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Genesis Energy’s Short Interest Is below the Industry Average

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Short interest

Genesis Energy’s (GEL) short interest as a percentage of float ratio has fallen to 2.7%. This ratio is lower than its 2016 average of 3.3%. However, it is higher than its historical two-year average of 2.5%.

The above chart shows GEL’s one-year closing price and short interest as a percentage of float. Short interest is the number of shares sold short, whereas short interest as a percentage of float is the number of shares sold short divided by floating shares. A high percentage of short interest or an increase in short interest indicates pessimism about a stock. However, this might not necessarily result in a stock price decline. Short position holders may try to cover their short positions, which could result in a stock rally.

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Industry average

The Alerian MLP Index (AMZ), which tracks 50 energy MLPs, has an average short interest as a percentage of float ratio of ~3.0%. GEL’s short interest as a percentage of float ratio is below the industry average. Sunoco LP (SUN), Tallgrass Energy Partners (TEP), and Golar LNG Partners (GMLP) have the highest short interest to float ratios among AMZ constituents.

Put-call ratio

The put-call ratio is another measure used to look at investors’ sentiment towards a stock. A high put-call ratio may indicate that a large number of investors expect the stock price to fall in the future, and vice versa. GEL has a put-call ratio of 0.3x.

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