Mar 15, 2016

Posted by in Stock Reports | 0 Comments

Tracking short-interest levels in 3 NYSE stocks: Halcon Resources Corporation (HK), Two Harbors Investment Corp. (TWO), Brookdale Senior Living Inc. (BKD)

Tracking short-interest levels in 3 NYSE stocks: Halcon Resources Corporation (HK), Two Harbors Investment Corp. (TWO), Brookdale Senior Living Inc. (BKD)

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 01/03/2016 short interest for Halcon Resources Corporation (HK) stood at 12544210 shares, an increase of 638114 shares or 5.09 percent compared to 11906096 shares on 12/02/2016. This short interest comprises 13 percent of the entire float. Short interest ratio now stands at 10.13 at the average volume of 1237917 shares.

According to the latest short-interest data for the two-week period ended 01/03/2016 short interest for the stock of Two Harbors Investment Corp. (TWO) increased from 5060783 shares at the end of the settlement date of 12/02/2016 to 5265057 shares, marking a growth of 204274 shares or 3.88 percent. The current short interest accounts for 1.53 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 2.039445 as of 01/03/2016 assuming average daily trading volume of 2581613 shares.

Short interest for the shares of Brookdale Senior Living Inc. (BKD) rose 14.4 percent from 9179708 shares on 12/02/2016 to 10723514 shares on 01/03/2016. Investors have taken short positions on 6 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 2.020041 days. It is based on average daily trading volume of 5308562 shares.

 

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