Schlumberger’s Short Interest on April 13
Short interest in Schlumberger
Short interest in Schlumberger (SLB) stock as a percentage of its float was 1.2% on April 13, 2017, which is nearly unchanged from December 30, 2016. Since the end of 4Q16, short interest in SLB stock has increased 1%.
As noted in the graph below, SLB’s stock price and short interest as a percentage of float have largely been inversely related since April 2015.
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Implications of short interest
Short interest is the number of shares sold short, divided by the number of shares outstanding. A fall in short interest as a percentage of float, or a decline in short interest, indicates that fewer investors expect the stock’s price to fall. Since December 30, 2016, SLB’s stock price has decreased 7%, reflecting the rise in short interest in SLB stock.
However, investors should note that the market could go against investors’ sentiment. Also, stock prices could increase when investors start buying the stock to cover their short positions.
SLB comprises 0.54% of the SPDR S&P 500 ETF (SPY). SPY tracks the price and yield performance of the S&P 500 Index (SPX-INDEX). The energy sector makes up 6.6% of SPX-INDEX.
You can learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer.