Does ConocoPhillips’s Rising Short Interest Signal a Downtrend?
Short interest in ConocoPhillips’s stock
As of August 30, 2017, ConocoPhillips (COP) total shares shorted (or short interest) stood at ~32.3 million, whereas its average daily volume is ~6.8 million. This means that the short interest ratio for COP’s stock was ~4.7x as of that date.
In August 2017, the short interest ratio for COP’s stock reached a new 52-week high. ConocoPhillips’ short interest ratio has a 52-week low of ~1.8x. ConocoPhillips’s stock’s average daily volume has been calculated for the short interest reporting period from August 15, 2017, to August 30, 2017.
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When viewed from the perspective of shares outstanding, the current short interest in ConocoPhillips stock as a percentage of shares outstanding is now ~2.7%. Since the start of 2017, short interest in ConocoPhillips stock as a percentage of shares outstanding has increased from ~1.2% to ~2.7% in 2017.
During this time, the stock has fallen ~1%, which means that short sellers have been adding short bets on COP as its stock has declined, which could mean that they feel that COP’s overall falling trend might continue.
COP’s short interest in context
As of August 30, 2017, oil and gas exploration and production peers Consol Energy (CNX), Range Resources (RRC), and Southwestern Energy (SWN) had short interest as percentages of shares outstanding of ~8.5%, ~13.6%, and ~8.3%, respectively. The short interest in ConocoPhillips stock as a percentage of shares outstanding is thus much lower than those of many other upstream stocks in the SPDR S&P Oil and Gas Exploration & Production ETF (XOP).
To know more about what happened in energy sector last week, check out Market Realist’s series Your Energy Sector Update for the Week Ended September 15.