Short interest in WMB and WPZ
Short interest in Williams Companies (WMB) as a percentage of shares outstanding has fallen to 1.4%. That’s lower than the 2016 average of 2.8%. It’s also lower than the historical three-year average of 2.5%. That could indicate a bullish sentiment.
Similarly, short interest in Williams Partners (WPZ) of 1.4% is also below the three-year historical average of 2.5%.
The above graph shows short interest as shares outstanding for WMB. Short interest is the number of shares sold short, whereas short interest as a percentage of outstanding shares is the number of shares sold short divided by outstanding shares. A high percentage of short interest or a rise in short interest could indicate pessimism for the stock. However, that might not necessarily result in a fall in the stock since short position holders try to cover their short positions, which might result in a stock rally.
The Alerian MLP Index (AMZ), which tracks 50 energy MLPs, has an average short interest as a percentage of shares outstanding of ~3.2%. Short interest in both WMB and WPZ as a percentage of shares outstanding is lower than the industry average.
Put-call ratio is another measure of investor sentiment for a stock. A high put-call ratio might indicate that a lot of investors expect the stock to fall in the future, and vice versa. WPZ has a low put-call ratio of 0.30.