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Short Interest in Cheniere Energy: What Investors Should Know

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Feb. 22 2017, Updated 9:06 a.m. ET

Short interest in Cheniere Energy

Short interest in Cheniere Energy (LNG), as a percentage of float ratio, fell to 6.7%. The ratio is lower compared to the average of 9.1% in 2016. It’s lower than the historical three-year average of 8.5%. It might indicate bullish sentiment.

The above chart shows the one-year closing price and short interest as a percentage of float for Cheniere Energy. Short interest is the number of shares sold short, while 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, it might not result in a stock price decline as short position holders try to cover their short positions. It might result in a stock rally.

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Industry average

Short interest in Cheniere Energy fell compared to historic levels. However, it’s still high compared to the industry average. The Alerian MLP Index (AMZ), which tracks 50 energy MLPs, has an average short interest as a percentage of float of 3.1%. Sunoco LP (SUN), Boardwalk Pipeline Partners (BWP), and Golar LNG Partners (GMLP) are part of AMZ. They have the highest short interest-to-float ratios.

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