Short interest in Marathon Oil’s stock fell
On January 31, 2017, Marathon Oil’s (MRO) total shares shorted, or its short interest, stood at ~45.3 million. Its average daily volume was ~8.9 million on the same day. This means that MRO stock’s short interest ratio is ~5.1x. The 52-week range of the short interest ratio in MRO’s stock is 0.8x–5.1x.
Current short interest in MRO’s stock as a percentage of its shares outstanding is slightly on the high side at ~5.3%, compared to all other upstream companies from the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
In the last three months, since its 3Q16 earnings, short interest in Marathon Oil’s stock as a percentage of its shares outstanding has fallen from ~6.2% to ~5.3%, despite a ~27% rise in its stock price.
Other upstream players
Other upstream companies such as California Resources (CRC), Devon Energy (DVN), and Encana (ECA) have short interests as percentages of their shares outstanding of ~27.1%, ~2.4%, and ~1.8%, respectively. The Direxion Daily Energy Bull 3X ETF (ERX) is a leveraged ETF that invests in domestic companies from the energy sector.
In the next article, we’ll take a look at a possible trading range for MRO stock.