Apr 1, 2016

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The NASDAQ Shorts Report: Sirius XM Holdings Inc. (SIRI), Frontier Communications Corporation (FTR), Genocea Biosciences, Inc. (GNCA)

The NASDAQ Shorts Report: Sirius XM Holdings Inc. (SIRI), Frontier Communications Corporation (FTR), Genocea Biosciences, Inc. (GNCA)

Short interest is a measure of how many shares of any given security have been sold short in a period of time. Typically, a stock exchange produces a monthly report on the total amount of short interest in any given stock. This number is expressed as a percentage of stocks sold short which have not yet been covered compared to the total outstanding shares of the stock. The higher the short interest, the more investors are betting the stock will fall in price. However, a very high short interest can be the predecessor to a rise in stock price.

A stock’s short interest ratio (SIR) indicates how many trading days it would take to cover (i.e., buy back) all existing shorted shares at the stock’s average daily trading volume. To arrive at this number, the total short interest on a given stock is divided by the equity’s typical daily volume.

As with the short-to-float ratio, there’s no distinct line in the sand — but a SIR at or above 5.00 is generally considered noteworthy, since that figure suggests it would take a week for all of the existing short positions to be covered.

Short interest data is released on a semi-monthly basis by the major U.S. Exchanges, with new data coming out around the second and fourth week of each month. Accordingly, each reporting period covers a roughly two-week span of time.

If the number of shorted shares declined during the latest two-week period, it suggests the short sellers have been buying back their bearish bets. Conversely, an increase in the number of shares sold short reveals that new pessimistic positions have been created.

As of 15/03/2016 short interest for Sirius XM Holdings Inc. (SIRI) stood at 165830981 shares, an increase of 7658320 shares or 4.62 percent compared to 158172661 shares on 29/02/2016. This short interest comprises 9 percent of the entire float. Short interest ratio now stands at 4.31 at the average volume of 38501497 shares.

According to the latest short-interest data for the two-week period ended 15/03/2016 short interest for the stock of Frontier Communications Corporation (FTR) decreased from 170449147 shares at the end of the settlement date of 29/02/2016 to 164474319 shares, marking a decline of -5974828 shares or -3.63 percent. The current short interest accounts for 14.19 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 8.169869 as of 15/03/2016 assuming average daily trading volume of 20131819 shares.

Short interest for the shares of Genocea Biosciences, Inc. (GNCA) rose 3.84 percent from 2279269 shares on 29/02/2016 to 2370261 shares on 15/03/2016. Investors have taken short positions on 10 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 17.10614 days. It is based on average daily trading volume of 138562 shares.

 

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