What is a good short ratio for a stock?
Typically, investors are looking for a short ratio between 8 and 10 days or higher because it is generally expected that a short ratio of this size is relatively difficult to cover, so the stock will go through a rally before hitting an upswing.
What does a 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.
Is a high short interest ratio good?
When the short interest ratio is high, it suggests investors are bearish about a stock. If the short interest ratio is low, it implies that investors are bullish. The higher the short interest ratio, the more vulnerable a stock is to a short squeeze.
How do you tell if a stock is heavily shorted?
For general shorting information about a company's stock, you can usually go to any website with a stock quote service. For more specific short interest info, you would have to go to the stock exchange where the company is listed.
What are the most shorted stocks?
Most Shorted StocksSymbol SymbolCompany NameFloat Shorted (%)BYND BYNDBeyond Meat Inc.40.17%VERV VERVVerve Therapeutics Inc.38.69%BGFV BGFVBig 5 Sporting Goods Corp.37.73%ICPT ICPTIntercept Pharmaceuticals Inc.37.73%42 more rows
What is a normal amount of short interest?
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.
How do you read a short interest ratio?
When expressed as a percentage, short interest is the number of shorted shares divided by the number of shares outstanding. For example, a stock with 1.5 million shares sold short and 10 million shares outstanding has a short interest of 15% (1.5 million/10 million = 15%).
What stock has the highest short interest?
Stocks with Highest Short InterestRKT6.37-0.16% Rocket Companies, Inc.CVNA24.272.87% Carvana Co.UPST35.143.06% Upstart Holdings, Inc.EVGO8.180.15% EVgo, Inc.MSTR167.606.26% MicroStrategy Incorporated.BYND23.72-0.19% Beyond Meat, Inc.SAVA26.920.49% Cassava Sciences, Inc.VERU12.790.83% Veru Inc.More items...