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Has Short Interest in PTEN Decreased since 3Q16?

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Short interest in Patterson-UTI Energy

Short interest in Patterson-UTI Energy (PTEN) stock as a percentage of its float was 15.7% on January 23, 2017, compared to 17.9% on September 30, 2016. Since the end of 3Q16, short interest in PTEN has decreased 12%.

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Short interest and stock price

Short interest is the number of shares sold short, divided by the number of shares outstanding. A decline in short interest as a percentage of float, or a fall in short interest, indicates that fewer investors expect the stock’s price to fall. PTEN’s stock price has risen ~21% since September 30, 2016, reflecting the fall in short interest.

However, investors should note that the market could go against investors’ sentiment. Also, share price could increase when investors start buying the stock to cover their short positions. Energy stocks are typically correlated with crude oil price.

Has PTEN’s correlation with crude oil’s price increased? We’ll explored this topic in the next part of this series.

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