Apr 8, 2016

Posted by in Stock Reports | 0 Comments

Healthcare Stocks With Swings In Short Interest: Allergan plc (AGN), AbbVie Inc. (ABBV), Celgene Corporation (CELG)

Healthcare Stocks With Swings In Short Interest: Allergan plc (AGN), AbbVie Inc. (ABBV), Celgene Corporation (CELG)

Stocks on the major exchanges can be sold short by traders who expect the security to decrease in value in the future.  Over a period of time, there will be a number of traders that are carrying short positions in the stock.  Traders have found that when there are a large number of shorts in a security, it often precedes a short squeeze as a result of the imbalance of supply and demand. The short interest can be calculated by taking the number of shares short divided by the total number of stocks in float.

Interpreting the short interest on a security is not as simple as saying, The short interest is high, let me buy the stock. Each stock has different thresholds of what constitutes a high level of short interest.  Traders will have to use short interest, news, fundamental analysis, and the days to cover formula.  This process is very subjective and if interpreted incorrectly, could be a recipe for disaster. Traders should wait for a pickup in price and volume before attempting to jump on board a short squeeze.

As of 15/03/2016 short interest for Allergan plc (AGN) stood at 5778620 shares, an increase of 511253 shares or 8.85 percent compared to 5267367 shares on 01/03/2016. This short interest comprises 1 percent of the entire float. Short interest ratio now stands at 2.32 at the average volume of 2492720 shares.

According to the latest short-interest data for the two-week period ended 15/03/2016 short interest for the stock of AbbVie Inc. (ABBV) decreased from 24092825 shares at the end of the settlement date of 01/03/2016 to 23707927 shares, marking a decline of -384898 shares or -1.62 percent. The current short interest accounts for 1.48 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 3.527574 as of 15/03/2016 assuming average daily trading volume of 6720746 shares.

Short interest for the shares of Celgene Corporation (CELG) fell -9.14 percent from 13337805 shares on 29/02/2016 to 12220790 shares on 15/03/2016. Investors have taken short positions on 2 percent of the total common shares of the stock that are floating on the exchange. The days-to-cover short interest ratio is now at 2.204692 days. It is based on average daily trading volume of 5543083 shares.

 

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