Short interest in DCP Midstream
Short interest in DCP Midstream Partners (DPM) as a percentage of float ratio fell to 2.8%. This ratio is lower than the 2016 average of 4.4%. Moreover, it is lower than the historical three-year average of 4.1%. This could indicate a bullish sentiment.
The above chart shows the one-year closing price and short interest as a percentage of float for DPM. Short interest is the number of shares sold short, and 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, generally indicates pessimism about the stock. However, this might not necessarily result in a stock price decline as short position holders try to cover their short positions, which could result in a stock rally.
The Alerian MLP Index (AMZ), which tracks 50 energy MLPs, has an average short interest as a percentage of float of ~2.5%. Short interest in DPM as a percentage of float ratio is above the industry average.
The put-call ratio is another measure to look at investors’ sentiment toward a stock. A high put-call ratio could indicate that a large number of investors expect the stock price to fall in the future and vice versa. DPM has a put-call ratio of 0.9.