Short interest in Schlumberger
Implications of short interest
Short interest is the number of shares sold short, divided by the number of shares outstanding. A rise in short interest as a percentage of float, or a rise in short interest, indicates that more investors expect the stock’s price to fall. Since March 31, 2017, Schlumberger’s stock price has fallen 8%, which reflects the rise in short interest in Schlumberger stock. Read Which Oilfield Service Giant Stands Tallest after 1Q17? for a comparative analysis of the largest oilfield services companies
However, investors should note that the market could go against investors’ sentiment. The stock price could increase when investors start buying the stock to cover their short positions. Schlumberger accounts for 0.49% of the SPDR S&P 500 ETF (SPY). SPY tracks the price and yield performance of the S&P 500 Index (SPX-INDEX). The S&P 500 Index includes 500 top companies. The energy sector makes up 6.3% of SPX-INDEX.
Learn more about the OFS industry, read The Oilfield Equipment and Services Industry: A Primer.