Mar 16, 2016

Posted by in Stock Reports | 0 Comments

Large-Cap Stocks With Swings In Short Interest: The Clorox Company (CLX), Boston Properties Inc. (BXP), McCormick & Company, Incorporated (MKC)

Large-Cap Stocks With Swings In Short Interest: The Clorox Company (CLX), Boston Properties Inc. (BXP), McCormick & Company, Incorporated (MKC)

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 01/03/2016 short interest for The Clorox Company (CLX) stood at 6066935 shares, an increase of 168713 shares or 2.78 percent compared to 5898222 shares on 12/02/2016. This short interest comprises 5 percent of the entire float. Short interest ratio now stands at 6.19 at the average volume of 980023 shares.

According to the latest short-interest data for the two-week period ended 01/03/2016 short interest for the stock of Boston Properties Inc. (BXP) increased from 2599428 shares at the end of the settlement date of 12/02/2016 to 2774069 shares, marking a growth of 174641 shares or 6.3 percent. The current short interest accounts for 1.82 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 2.962913 as of 01/03/2016 assuming average daily trading volume of 936264 shares.

Short interest for the shares of McCormick & Company, Incorporated (MKC) fell -2.27 percent from 7165779 shares on 12/02/2016 to 7006791 shares on 01/03/2016. Investors have taken short positions on 38 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 8.383114 days. It is based on average daily trading volume of 835822 shares.

 

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