X
<

Williams Companies Outperformed AMLP Last Week: What’s Next?

PART:
1 2 3 4 5
Part 4
Williams Companies Outperformed AMLP Last Week: What’s Next? PART 4 OF 5

Why Short Interest in Williams Companies Indicates a Bullish Sentiment

Short interest in Williams Companies

Short interest in Williams Companies (WMB) as a percentage of float has come down to ~1.3% compared to ~1.4% in the previous week. Moreover, it is lower compared to its past one-year and three-year averages of 2.2% and 2.4%, respectively. This could indicate a bullish sentiment.

Why Short Interest in Williams Companies Indicates a Bullish Sentiment

Interested in WMB? Don't miss the next report.

Receive e-mail alerts for new research on WMB

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

The above chart shows the one-year closing price and short interest as a percentage of a float for WMB. Short interest is the number of shares sold short, and short interest as a percentage of float is the number of shares sold short divided by the number of floating shares.

A high short interest or sudden increase in short interest generally indicates pessimism about the stock. However, this may not necessarily result in a stock price decline as short position holders try to cover their short positions, which could result in a stock rally.

Industry average

The Alerian MLP Index (AMZ), which tracks 50 energy MLPs, has an average short interest as a percentage of float of 3.4%. Short interest in WMB as a percentage of float ratio is below the industry average.

Sunoco LP (SUN), Boardwalk Pipeline Partners (BWP), and Golar LNG Partners (GMLP) are among the AMZ constituents that have the highest short-interest-to-float ratios.

Put–call ratio

The put–call ratio is another measure to look at investors’ sentiment toward a stock. A high put–call ratio could indicate that a large number of investors expect the stock price to decline and vice versa. WMB has a put–call ratio that is close to zero.

X

Please select a profession that best describes you: