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What Are the Short Interest and Institutional Ownership Trends for NFX?

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Short interest in NFX shares

On June 24, 2016, Newfield Exploration’s (NFX) short interest stood at ~12.5 million shares. This represents the number of shares that have been sold short but have yet to be closed out.

Newfield Exploration’s short interest as a percentage of its float, or short interest ratio, was 6.3%. This compares to 5.3% on March 31, 2016. So, since the end of 1Q16, Newfield Exploration’s short interest has increased by 20%.

Newfield Exploration’s stock price during these two periods was $33.25 on March 31, 2016, and $41.80 on June 24, 2016. As we can see in the image below, Newfield Exploration’s stock price and short interest as a percentage of float are inversely related.

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Short interest

Short interest is an indicator that represents investor sentiment that a stock’s price is likely to fall. Increasingly short interest for a particular stock represents pessimism among investors.

In comparison, upstream peers Concho Resources (CXO), Hess (HES), and Continental Resources (CLR) have short interest ratios of ~5%, ~6%, and ~28%, respectively. All these companies make up ~8.3% of the iShares US Oil & Gas Exploration & Production ETF (IEO).

Newfield Exploration’s institutional holdings

Newfield Exploration’s floating shares are currently held by 639 institutional investors. Institutional shares held as a percentage of outstanding shares has remained at 105% since 1Q16.

The company’s institutional shares held as a percentage of float has also remained the same since the end of 1Q16.

The number of new institutional buyers of NFX shares on June 24, 2016, has declined from 84 to 82 since March 31, 2016. NFX’s largest institutional holders include Wellington Management, Vanguard Group, and Fidelity Investments, which own ~10.4%, ~8.6%, and ~7.0%, respectively, of NFX’s outstanding shares.

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