Investors’ short interest in Weatherford
Weatherford International’s (WFT) short interest as a percentage of its float was 16.7% on May 26, 2017, compared to ~14% on March 31, 2017. Since the end of 1Q17, WFT’s short interest has increased 19%. As the graph below shows, WFT’s stock price and short interest as a percentage of float have been inversely related since May 2015. Since March 31, 2017, WFT’s stock price has decreased ~23%, reflecting the rise in short interest.
Weatherford versus industry ETF
WFT makes up 3.0% of the iShares US Oil Equipment & Services ETF (IEZ). WFT also makes up 0.02% of the iShares Russell 3000 ETF (IWV). The energy sector makes up 5.6% of IWV. IWV tracks the Russell 3000 Index (RUA-INDEX). The index consists of 3,000 large companies in the US. The index has risen 16% in the past one year compared to an 8% fall in WFT’s stock price.
Learn more about the OFS industry in Market Realist’s What Oilfield Services Companies’ Forward Multiples Indicate.