Shorting ExxonMobil: What’s Driving the Fall in XOM Short Interest?
Short interest in ExxonMobil
So far in fiscal 2017, short interest in ExxonMobil (XOM) stock has fallen 30%. Remember, a decline in short interest implies a decline in the overall bearish sentiment toward a stock. However, during the same period, XOM’s stock price has fallen 11%.
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By comparison, over the same period, XOM peers Royal Dutch Shell (RDS.A), BP (BP), and Statoil (STO) have witnessed rises of 1%, 20%, and 13% in their short interests. At the same time, the stock prices of RDS.A, BP, and STO have fallen 5%, 9%, and 10%, respectively, so far in 2017.
Notably, if you’re looking for exposure to large capitalization stocks, you might consider the Vanguard 500 Index Fund Investor Shares (VFINX). The ETF also has ~7% exposure to energy sector stocks.
In the next and final part of this series, we’ll examine the implications of the institutional holdings in ExxonMobil (XOM) stock.