Mar 11, 2016

Posted by in Stock Reports | 0 Comments

Small-Cap Stocks With Swings In Short Interest: PTC Therapeutics, Inc. (PTCT), Ambarella, Inc. (AMBA), SeaWorld Entertainment, Inc. (SEAS)

Small-Cap Stocks With Swings In Short Interest: PTC Therapeutics, Inc. (PTCT), Ambarella, Inc. (AMBA), SeaWorld Entertainment, Inc. (SEAS)

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 29/02/2016 short interest for PTC Therapeutics, Inc. (PTCT) stood at 9054764 shares, a decrease of -2018803 shares or -22.3 percent compared to 11073567 shares on 12/02/2016. This short interest comprises 36 percent of the entire float. Short interest ratio now stands at 1.57 at the average volume of 5756574 shares.

According to the latest short-interest data for the two-week period ended 29/02/2016 short interest for the stock of Ambarella, Inc. (AMBA) increased from 11303539 shares at the end of the settlement date of 12/02/2016 to 11392178 shares, marking a growth of 88639 shares or 0.78 percent. The current short interest accounts for 36.77 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 7.62977 as of 29/02/2016 assuming average daily trading volume of 1493122 shares.

Short interest for the shares of SeaWorld Entertainment, Inc. (SEAS) fell -6.58 percent from 16234575 shares on 29/01/2016 to 15232780 shares on 12/02/2016. Investors have taken short positions on 18 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 15.589674 days. It is based on average daily trading volume of 977107 shares.

 

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