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Analyzing Short Interest in Marathon Oil’s Stock

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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.

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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.

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