Short interest in Schlumberger
Implications of short interest
Since June 30, 2017, SLB’s stock price has increased 3%. Crude oil price has been volatile since March 2017, falling 2% from March 31 until August 4. Investor sentiment in the energy market has also been affected by crude oil price swings recently, leading to volatility in many oilfield services companies’ stocks in the past four months. Schlumberger makes up 16.3% of the iShares U.S. Oil Equipment & Services ETF (IEZ). Since June 30, 2017, IEZ decreased 1%, while the S&P 500 Index (SPX-INDEX) increased 2%.
Short interest in Schlumberger’s peers
Generally, if short interest drops as a percentage of float, fewer investors expect the stock’s price to fall. Since June 30, 2017, short interest in Patterson-UTI Energy (PTEN) has declined 11%, while PTEN’s stock price decreased 5%. Short interest in TechnipFMC (FTI) has fallen 14% since June 30, 2017, while its stock price rose 1%. Short interest in McDermott International (MDR) has fallen 11% since June 30, while its stock price fell 7% during this period.
Next, we will discuss SLB’s correlation with crude oil.