Analyzing the Short Interest in National Oilwell Varco on July 11



Short interest in National Oilwell Varco

Short interest in National Oilwell Varco (NOV) as a percentage of its float was 6.8% as of July 11, 2017, which was unchanged compared to March 31, 2017. Since March 31, short interest in NOV has fallen 1%. NOV’s stock price and short interest as a percentage of float have largely been inversely related since July 2015. From the end of April 2017 until now, short interest has been flat although NOV’s stock price has fallen.

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Is crude oil price affecting investor sentiment?

Crude oil price has been bearish since March 2017, falling 16% since March 1 until July 11. Investors’ sentiment towards the energy market has also been falling. In effect, many oilfield services companies’ stock prices have been downbeat since March. Since March 31, 2017, NOV’s stock price has fallen ~17%. NOV makes up 9.8% of the iShares US Oil Equipment & Services ETF (IEZ). IEZ has fallen 20% since March 1, 2017. The SPX-INDEX rose 3% since March 31, 2017.

Short interest in National Oilwell Varco’s peers

Since March 31, 2017, short interest in McDermott International (MDR) has fallen 66%, while MDR’s stock price rose 9%. Since March 31, 2017, short interest in Oceaneering International (OII) has risen 40%, while its stock price fell 16%. Short interest in Core Laboratories (CLB) has risen 9% since March 31, while its stock price fell 9% during this period. Generally, investors expect a stock’s price to move inversely with the change in short interest.

Let’s check out National Oilwell Varco’s correlation with crude oil in the following part of the series.


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