Apr 5, 2016

Posted by in Stock Reports | 0 Comments

Three Significant Large-Cap Short Interest Moves To Analyze: Visa Inc. (V), Baxalta Incorporated (BXLT), Oracle Corporation (ORCL)

Three Significant Large-Cap Short Interest Moves To Analyze: Visa Inc. (V), Baxalta Incorporated (BXLT), Oracle Corporation (ORCL)

Short Interest is the total number of shares of stock currently sold short in the market. Some technicians interpret high levels of short interest as bullish, some as bearish. The bullish perspective is that, because all short sales must be covered (i.e. short-sellers eventually must purchase shares to return the ones they have borrowed), short interest represents latent future demand for the stocks. As short sales are covered, the demand created by the share purchase will force prices up. The bearish interpretation of short interest is based on the fact that short-sellers tend to be larger, more sophisticated investors.

Accordingly, increased short interest reflects bearish sentiment by those investors in the know which would be a negative signal of the market’s prospects. Investors with brokerage accounts will often leave credit balances in those accounts when they plan to invest in the near future. Thus, credit balances may be viewed as measuring the potential for new stock purchases. As a result, a buildup of balances is viewed as a bullish indicator for the market.

As of 15/03/2016 short interest for Visa Inc. (V) stood at 51475785 shares, an increase of 8614840 shares or 16.74 percent compared to 42860945 shares on 01/03/2016. This short interest comprises 3 percent of the entire float. Short interest ratio now stands at 5.51 at the average volume of 9347864 shares.

According to the latest short-interest data for the two-week period ended 15/03/2016 short interest for the stock of Baxalta Incorporated (BXLT) increased from 8578953 shares at the end of the settlement date of 01/03/2016 to 8737531 shares, marking a growth of 158578 shares or 1.81 percent. The current short interest accounts for 1.49 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 1.294986 as of 15/03/2016 assuming average daily trading volume of 6747201 shares.

Short interest for the shares of Oracle Corporation (ORCL) rose 7.96 percent from 39024433 shares on 01/03/2016 to 42399686 shares on 15/03/2016. Investors have taken short positions on 1 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 3.100086 days. It is based on average daily trading volume of 13676939 shares.

 

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