Short interest in Nabors Industries
Short interest in Nabors Industries (NBR) as a percentage of its float is 12.2% as of July 19, 2017, compared to 10% as of March 31, 2017. Since March 31, short interest in NBR has risen 21%. NBR’s stock price and short interest as a percentage of float have largely been inversely related since July 2015 except for a brief period of December 2016 to January 2017. During this period, short interest in NBR and NBR’s stock price both rose.
Crude oil price and investor sentiment
The crude oil price has turned bearish since March 2017, falling 12% from March 1 until July 19. Investors’ sentiment towards the energy market has weakened over the past four months, which has negatively affected many oilfield services companies’ stock prices since March. Since March 31, 2017, NBR’s stock price has crashed ~39%. NBR makes up 2.2% of the iShares US Oil Equipment & Services ETF (IEZ). IEZ has fallen 8% since March 31, 2017. The SPX-INDEX rose 14% since March 31, 2017.
Short interest in Nabors Industries’ peers
Since March 31, 2017, short interest in Superior Energy Services (SPN) has risen 45%, while SPN’s stock price fell 18%. Since March 31, 2017, short interest in Oil States International (OIS) has gone up 2%, while its stock price fell 13%. Short interest in Helmerich & Payne (HP) has risen 26% since March 31, while its stock price fell 14% during this period.
Has Nabors Industries’ correlation with crude oil changed? Let’s discuss this in the next part of the series.