Stocks with the Highest Short Interest Ratios
| Company | Shares Shorted | Public Float | Short Interest Ratio |
| Blythe (BTH) | 6.26 million | 9.93 million | 63.09% |
| USANA Health Sciences (USNA) | 4.08 million | 6.53 million | 62.45% |
| Vera Bradley (VRA) | 10.51 million | 20.04 million | 52.42% |
| Spectrum Pharmaceuticals (SPPI) | 27.02 million | 52.12 million | 51.85% |
What is a good short ratio?
This gives us a short interest ratio of approx. 0.01 or 1%. Short interest as a percentage of float above 50% means that short-sellers would have a very difficult time covering their positions if the price were to rise. This is because the majority of shares have been sold short already.
What is the average percent of stocks sold short?
Aug 19, 2021 · The short interest ratio is a quick way to see how heavily shorted a stock may be versus its trading volume. The short interest ratio indicates how many days it would take for all the shares short ...
How to short stocks for beginners?
Apr 12, 2022 · A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. A short interest ratio of 10 or greater indicates strong pessimism about a stock. BEST currently has a short interest ratio of 5.0. Learn More on BEST's short interest ratio.
What is considered a high short interest ratio?
Feb 19, 2013 · For stocks moving higher, try looking for historically high short ratios for stocks up 20% or more (new uptrend) or that have just rallied past an …
What is a high short ratio for a stock?
Short interest as a percentage of float below 10% indicates strong positive sentiment. Short interest as a percentage of float above 10% is fairly high, indicating the significant pessimistic sentiment. Short interest as a percentage of float above 20% is extremely high.
Is a low short ratio good?
A high short ratio typically implies that investors are bearish or expecting the stock price to drop. Conversely, a low short ratio suggests they're bullish.
Is a high short ratio good?
The ratio can also be expressed as the number of days to cover, which is the total short position divided by the average daily trading volume. High short interest ratios typically indicate bearish market sentiment, while low ratios could indicate neutral or bullish sentiment.
How do you tell if a stock is heavily shorted?
Search for the stock, click on the Statistics tab, and scroll down to Share Statistics, where you'll find the key information about shorting, including the number of short shares for the company as well as the short ratio.
What is a bullish short ratio?
The rationale is that if everyone is selling, then the stock is already at its low and can only move up. Thus, contrarians feel a high short-interest ratio is bullish because, eventually, there will be significant upward pressure on the stock's price as short-sellers cover their short positions.
What does short ratio tell you?
The short ratio tells investors approximately how many days it would take short sellers to cover their positions if the price of a given stock were to increase. The higher the short ratio, the longer it will take to buy back those borrowed shares.Aug 9, 2016
What is an average short interest?
The short interest ratio is a mathematical indicator of the average number of days it takes for short sellers to repurchase borrowed securities in the open market. The ratio is calculated by dividing the total number of shorted shares of a stock by the average daily trading volume.
What is the most shorted stock right now?
Most Shorted StocksSymbol SymbolCompany NameFloat Shorted (%)BYND BYNDBeyond Meat Inc.37.51%GOGO GOGOGogo Inc.37.22%LMND LMNDLemonade Inc.37.06%VERV VERVVerve Therapeutics Inc.34.95%42 more rows
Do short sellers have to cover?
Short covering is necessary in order to close an open short position. A short position will be profitable if it is covered at a lower price than the initial transaction; it will incur a loss if it is covered at a higher price than the initial transaction.
Is AMC the most shorted stock?
Most Shorted Stocks to Buy: AMC Entertainment (AMC) The first of our most shorted stocks to buy is AMC Entertainment. Along with GameStop (NYSE:GME), AMC stock has been a favorite vehicle since the very beginnings of 2021, as Redditors began to take on Wall Street's bears.Nov 8, 2021
What is BEST's current short interest?
Short interest is the volume of BEST shares that have been sold short but have not yet been covered or closed out. As of February 28th, traders hav...
What is a good short interest ratio for BEST?
The short interest ratio, also known as the "days to cover ratio", is calculated by dividing the number of shares of a stock sold short divided by...
Which institutional investors are shorting BEST?
As of the most recent reporting period, the following institutional investors, funds, and major shareholders have reported short positions of BEST:...
What is a good short interest percentage for BEST?
Companies that have a short interest as a percentage of float below 10% indicates positive investor sentiment and few short sellers. Stocks with a...
Is BEST's short interest increasing or decreasing?
BEST saw a increase in short interest during the month of February. As of February 28th, there was short interest totaling 9,630,000 shares, an inc...
What is BEST's float size?
BEST currently has issued a total of 387,700,000 shares. Some of BEST's outstanding shares are available for trading, while others are subject to v...
How does BEST's short interest compare to its competitors?
4.16% of BEST's shares are currently sold short. Here is how the short interest of companies in the sector of "transportation" compare to BEST: Su...
Which stocks are the most shorted right now?
As of the most recent reporting period, the following stocks had the largest short interest positions: Charter Communications, Inc. ($5.96 billio...
What does it mean to sell short BEST stock?
Short selling BEST is an investing strategy that aims to generate trading profit from BEST as its price is falling. BEST's stock is trading up $0.4...
What Is a Short Interest Ratio?
When traders talk about the “short interest ratio,” they often don’t agree on the definition. This is because there is more than one definition for the term and more than one way that the ratio can be calculated.
What is considered a high short interest ratio?
The concept of a high short interest ratio is a little ambiguous. Investors will often disagree as to just how high should be considered “high.” However, there are some rules of thumb that any experienced options trader would agree with. Here are a few of them:
How to trade using a high short interest ratio
Now that we’ve explained what is considered a high short interest ratio, let’s consider how to trade using this information.
High short interest ratio summary
There are a number of different definitions for what the short-interest ratio is.
Learn more about what this key ratio means for stocks
Typically, investors buy stocks with the hope that their share prices will rise. However, investors can also take the opposite approach by betting against a company's success. If you're convinced that a company's stock price has reached a peak and is about to decline, then you might try selling its stock short.
Shorting stocks
Shorting a stock is the opposite of buying a stock. When you short a stock, you borrow shares from your broker in the hope that their price will fall. You can then sell the borrowed stock and collect your proceeds from the sale. Because you now owe your broker the number of shares you borrowed, you'll eventually have to purchase them.
The short ratio
Knowing how many shares of a stock have been shorted is a good indication of how investors view that stock. That's where the short ratio comes in handy. Also known as the "days to cover" ratio, the short ratio is calculated by dividing the number of shares sold short by the average daily trading volume.
Using the short ratio
The short ratio can give you insight into how a company's stock price is likely to move. If a stock's short ratio is trending higher, then it may be a sign that investor sentiment in the company is souring, which is a warning for you to reevaluate your position and consider whether it's time to sell.
What Is the Short Interest Ratio?
The short Interest ratio is a simple formula that divides the number of shares short held short of a stock by the stock's average daily trading volume. Simply put, the ratio can help an investor find out very quickly if a stock is heavily shorted or not shorted versus its average daily trading volume.
What the Short Interest Ratio Can Tell You
The ratio tells an investor if the number of shares short is high or low versus the stock's average trading volume. The ratio can rise or fall based on the number of shares short. However, it can also increase or decrease as volume levels change.
Example of How to Use the Short Interest Ratio
The Tesla chart below shows the short interest ratio, the number of shares short, and the daily average trading volume. In the example, one can see that a rising short interest ratio does not always correspond to rising short interest.
The Difference Between a Short Interest Ratio and Short Interest
It is essential to remember that the short interest ratio and short interest are not the same. Short interest measures the total number of shares that have been sold short in the market.
Limitations of Using the Short Interest Ratio
The short interest ratio has several flaws, the first being that it is not updated regularly. Short interest is reported every two weeks and is usually as of the 15th and the last day of the month. It takes several days before the information is published and by that time, the number of shares short in the market may have already changed.
What is BEST's current short interest?
Short interest is the volume of BEST shares that have been sold short but have not yet been covered or closed out. As of August 13th, traders have sold 20,070,000 shares of BEST short. 8.66% of BEST's shares are currently sold short. Learn More#N#on BEST's current short interest.
What is a good short interest ratio for BEST?
The short interest ratio, also known as the "days to cover ratio", is calculated by dividing the number of shares of a stock sold short divided by its average trading volume. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers.
Which institutional investors are shorting BEST?
As of the most recent reporting period, the following institutional investors, funds, and major shareholders have reported short positions of BEST: Citadel Advisors LLC, Simplex Trading LLC, HAP Trading LLC, Susquehanna International Group LLP, Group One Trading L.P., Wolverine Trading LLC, and Cutler Group LP.
What is a good short interest percentage for BEST?
Companies that have a short interest as a percentage of float below 10% indicates positive investor sentiment and few short sellers. Stocks with a short interest percentage above 10% is considered high, suggesting some investors are pessimistic about the stock.
Is BEST's short interest increasing or decreasing?
BEST saw a increase in short interest during the month of August. As of August 13th, there was short interest totaling 20,070,000 shares, an increase of 19.7% from the previous total of 16,770,000 shares. Changes in short volume can be used to identify positive and negative investor sentiment.
What is BEST's float size?
BEST currently has issued a total of 387,700,000 shares. Some of BEST's outstanding shares are available for trading, while others are subject to various restrictions. The public float, also referred to as floating shares or "the float", are shares that publicly owned, unrestricted and available to trade on the open market.
How does BEST's short interest compare to its competitors?
8.66% of BEST's shares are currently sold short. Here is how the short interest of companies in the sector of "transportation" compare to BEST: Star Bulk Carriers Corp. (1.23%), Hub Group, Inc. (1.81%), Forward Air Co. (1.68%), SkyWest, Inc. (1.70%), Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (1.22%), Atlas Air Worldwide Holdings, Inc.
Short Sales
Short interest is a measure of short selling a stock, or "shorting." Assume you think that the price of Citibank stock will decline and you wish to profit from this expectation.
Short Interest Ratio
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.
Significance
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.
Good or Bad
A low short interest ratio means that not many investors think the stock's price will decline. This shows optimism -- or at the very least a lack of pessimism -- by investors. However, a high short interest ratio can have a paradoxically beneficial effect on the stock as well.
The Art of Short Selling
Short selling is the opposite of buying stocks. It's the selling of a security that the seller does not own, done in the hope that the price will fall. If you feel a particular security's price, let's say the stock of a struggling company, will fall, then you can borrow the stock from your broker-dealer, sell it and get the proceeds from the sale.
Short Interest Shows Sentiment
Short interest is the total number of shares of a particular stock that have been sold short by investors but have not yet been covered or closed out. This can be expressed as a number or as a percentage.
News Drives Changes in Short Interest
A large increase or decrease in a stock's short interest from the previous month can be a very telling indicator of investor sentiment. Let's say that Microsoft's short interest increased by 10% in one month. This means that there was a 10% increase in the number of people who believe the stock price will decrease.
Understanding the Short-Interest Ratio
The short-interest ratio is the number of shares sold short (short interest) divided by average daily volume. This is often called the "days-to-cover ratio" because it determines, based on the stock's average trading volume, how many days it will take short sellers to cover their positions if positive news about the company lifts the price.
The NYSE Short Interest Ratio
The New York Stock Exchange short-interest ratio is another great metric that can be used to determine the sentiment of the overall market. 2 The NYSE short-interest ratio is the same as short interest except it is calculated as monthly short interest on the entire exchange divided by the average daily volume of the NYSE for the last month.
Getting Caught in the Short Squeeze
Some bullish investors see high short interest as an opportunity. This outlook is based on the short interest theory. The rationale is, if you are short selling a stock and the stock keeps rising rather than falling, you'll most likely want to get out before you lose your shirt.
The Bottom Line
Although it can be a telling sentiment indicator, an investment decision should not be based entirely on a stock's short interest. That said, investors often overlook this ratio and its usefulness despite its widespread availability. Unlike the fundamentals of a company, the short interest requires little or no calculations.
Price To Earnings Tells You How Expensive a Stock Is, Relative To Other Stocks
Stock price alone has nothing to do with how “expensive” a stock is—shares of Booking Holdings (BKNG)—owner of sites like Priceline and Booking.com—trade for nearly $1,400.
How to Analyze Historical PE Ratios
Historical PE ratios are often used with the S&P 500 when analyzing trends and deciding whether the overall market is “expensive” or “cheap.”
How Short Selling Works
How A Short Squeeze Works
- Notice how in the short selling example, the investor was required to borrow the shares in order to make a bet on the downside of the stock. Borrowing shares from a broker is also called buying “on margin”. When you borrow from a broker on margin, you have to pay an interest fee on the borrowed amount, just like you would if borrowing money for any other use. Like with other borr…
Why Should You Care About The Short Ratio?
- Like mentioned, the short ratio can be a great tool for identifying potential future short squeezes. This can be particularly true for companies that are unfairly beaten down by the Street, when a company’s fundamentals are actually in a much healthier position than is perceived. On the technical trading side, stocks under consolidation can provide an opportunity for short term prof…
Using The Short Ratio as A Value Investor
- As previously alluded to, where the short ratio could be a great asset to the long term investor is for those who buy deep value stocks. As the Wall Street Bets community on Reddit showed explicitly through their crowding intolong trades into Gamestopand AMC, a heavy short selling presence can serve like a loading spring just waiting for a catalyst to the upside. It could be som…