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What’s Happened to WFT’s Short Interest since 1Q16?

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Dec. 4 2020, Updated 10:53 a.m. ET

Weatherford International’s short interest

Weatherford International’s (WFT) short interest as a percentage of its float was 7.6% as of July 8, 2016, compared to 5.3% on March 31. Since the end of 1Q16, WFT’s short interest has risen by 46%.

As noted in the graph above, WFT’s share price and short interest as percentages of float have been inversely related in the past three years. WFT makes up 0.03% of the iShares MSCI ACWI Low Carbon Target ETF (CRBN).

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Short interest and share price

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 fall in short interest, indicates that fewer investors expect a stock’s price to fall.

WFT’s stock price has fallen by 30% since March 31, reflecting a rise in its short interest. Since March 31, WFT’s smaller market capitalization peer Oil States International’s (OIS) share price has fallen by 1%.

Investors should note that the Market could go against investors’ sentiments. The stock’s price could rise when investors start buying the stock to cover their short positions.

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