Short interest in Schlumberger
Short interest in Schlumberger (SLB) as a percentage of its float was ~1.6% on August 18, 2017, which was a marginal increase compared to June 30, 2017. Short interest in SLB stock has increased 0.6% since June 30, 2017.
Implications of short interest
Since June 30, 2017, SLB’s stock price has fallen 4%. Since March 2017, crude oil’s price has been volatile, and it fell 4% from March 31 until August 18. Investors’ interest in the energy market has also been following crude oil price’s recent swings. This trend led to stock price volatility in several oilfield services companies in 2017.
Schlumberger comprises 16.9% of the iShares US Oil Equipment & Services ETF (IEZ). Since June 30, 2017, IEZ has decreased 11%, while the S&P 500 Index (SPX-INDEX) has remained unchanged.
Short interest in Schlumberger’s peers
In general, if short interest increases as a percentage of float, more investors expect the stock’s price to fall. Since June 30, 2017, short interest in Flotek Industries (FTK) has increased 1%, while FTK’s stock price decreased 37%.
Short interest in TechnipFMC (FTI) has declined 24% since June 30, 2017, while its stock price decreased 5%. Short interest in McDermott International (MDR) has decreased 11% since June 30, and its stock price fell 20%.
In the final part of this series, we’ll discuss SLB’s correlation with crude oil.