Mar 23, 2016

Posted by in Stock Reports | 0 Comments

NYSE Stocks With Swings In Short Interest: Valley National Bancorp (VLY), Lincoln National Corporation (LNC), Boardwalk Pipeline Partners, LP (BWP)

NYSE Stocks With Swings In Short Interest: Valley National Bancorp (VLY), Lincoln National Corporation (LNC), Boardwalk Pipeline Partners, LP (BWP)

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 Valley National Bancorp (VLY) stood at 19832855 shares, an increase of 2510791 shares or 12.66 percent compared to 17322064 shares on 12/02/2016. This short interest comprises 8 percent of the entire float. Short interest ratio now stands at 9.76 at the average volume of 2031814 shares.

According to the latest short-interest data for the two-week period ended 01/03/2016 short interest for the stock of Lincoln National Corporation (LNC) decreased from 5457131 shares at the end of the settlement date of 12/02/2016 to 4730607 shares, marking a decline of -726524 shares or -15.36 percent. The current short interest accounts for 1.97 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 1.546874 as of 01/03/2016 assuming average daily trading volume of 3058173 shares.

Short interest for the shares of Boardwalk Pipeline Partners, LP (BWP) rose 20.45 percent from 4644943 shares on 12/02/2016 to 5839102 shares on 01/03/2016. 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 5.829344 days. It is based on average daily trading volume of 1001674 shares.

 

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