Apr 5, 2016

Posted by in Stock Reports | 0 Comments

Tracking short-interest levels in 3 Large-Cap stocks: Schlumberger Limited (SLB), Twitter, Inc. (TWTR), Kinder Morgan, Inc. (KMI)

Tracking short-interest levels in 3 Large-Cap stocks: Schlumberger Limited (SLB), Twitter, Inc. (TWTR), Kinder Morgan, Inc. (KMI)

Short interest is a direct consequence of short sales, which are governed by special rules and regulations. Short interest is an important indicator that helps you measure investor sentiment about a particular stock or the market in general. Like many financial measures, short interest must be evaluated within the broader context and can mean different things under different circumstances.

Brokerages must report all short sales to the legal authorities, who keep track and publish a figure called short interest. This figure is the sum of all shares that have been borrowed to sell short but have not been replaced. The short interest ratio equals short interest, divided by the average daily volume of the stock.

All shares that have been shorted must be bought back eventually. In fact, most short sales are covered relatively soon, as waiting too long may result in the original owner attempting to sell the shares. When this happens, the brokerage may either try to locate other shares to borrow or force the short seller to immediately buy back the stock. The short interest ratio tells you how quickly the short sellers can, in theory, cover their short positions.

As of 15/03/2016 short interest for Schlumberger Limited (SLB) stood at 53058994 shares, a decrease of -4206149 shares or -7.93 percent compared to 57265143 shares on 01/03/2016. This short interest comprises 4 percent of the entire float. Short interest ratio now stands at 6.53 at the average volume of 8119808 shares.

According to the latest short-interest data for the two-week period ended 15/03/2016 short interest for the stock of Twitter, Inc. (TWTR) increased from 47711509 shares at the end of the settlement date of 01/03/2016 to 49495694 shares, marking a growth of 1784185 shares or 3.6 percent. The current short interest accounts for 8.62 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 2.282269 as of 15/03/2016 assuming average daily trading volume of 21687053 shares.

Short interest for the shares of Kinder Morgan, Inc. (KMI) fell -6.66 percent from 68321889 shares on 01/03/2016 to 64052892 shares on 15/03/2016. Investors have taken short positions on 3 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 2.599567 days. It is based on average daily trading volume of 24639833 shares.

 

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