Has Helmerich & Payne’s Short Interest Decreased since Fiscal 3Q16?

Helmerich & Payne’s (HP) short interest as a percentage of its float was 25.7% on November 2, compared to 24.5% on June 30. Since the end of fiscal 3Q16, HP’s short interest has increased 5%.

Short interest is the number of shares sold short, divided by the number of shares outstanding. A rise in short interest as a percentage of float, or a rise in short interest, indicates that more investors expect the stock’s price to fall. HP’s stock price has fallen ~5% since June 30, reflecting the rise in HP’s short interest.

Since June 30, HP’s lower market cap peer Precision Drilling Corporation’s (PDS) share price has declined 16%. However, investors should note that the market could go against investors’ sentiment. Also, a company’s share price could increase when investors start buying the stock to cover their short positions.

Next, we’ll discuss HP’s correlation with crude oil price.