Mar 15, 2016

Posted by in Stock Reports | 0 Comments

Three Significant NYSE Short Interest Moves To Analyze: Phillips 66 (PSX), Royal Caribbean Cruises Ltd. (RCL), American Tower Corporation (AMT)

Three Significant NYSE Short Interest Moves To Analyze: Phillips 66 (PSX), Royal Caribbean Cruises Ltd. (RCL), American Tower Corporation (AMT)

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 01/03/2016 short interest for Phillips 66 (PSX) stood at 14935701 shares, a decrease of -2339093 shares or -15.66 percent compared to 17274794 shares on 12/02/2016. This short interest comprises 3 percent of the entire float. Short interest ratio now stands at 4.03 at the average volume of 3710042 shares.

According to the latest short-interest data for the two-week period ended 01/03/2016 short interest for the stock of Royal Caribbean Cruises Ltd. (RCL) decreased from 14141902 shares at the end of the settlement date of 12/02/2016 to 13890385 shares, marking a decline of -251517 shares or -1.81 percent. The current short interest accounts for 8.17 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 4.248062 as of 01/03/2016 assuming average daily trading volume of 3269817 shares.

Short interest for the shares of American Tower Corporation (AMT) fell -12.79 percent from 5429991 shares on 12/02/2016 to 4814049 shares on 01/03/2016. 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 1.528572 days. It is based on average daily trading volume of 3149377 shares.

 

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