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What Do Short Interest Trends in Chesapeake Stock Tell Us?

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Short interest in Chesapeake Energy stock

On September 18, 2017, the short interest ratio, or short interest as a percentage of float, in Chesapeake Energy (CHK) stock was ~22%.

In January 2017, the short interest ratio in Chesapeake Energy stock was ~12%.

As the graph above shows, the short interest in Chesapeake Energy stock and its stock price seemed to have moved in opposite directions this year.

Chesapeake Energy’s short interest ratio has risen significantly since the beginning of 2017—usually a bearish sign. Rising short interest despite a decreasing stock price indicates that investors continue to see a downside in the stock.

As we noted above, the recent fall in Chesapeake Energy’s short interest could mean that at least some investors no longer see an ongoing downside in Chesapeake Energy stock.

In comparison, Chesapeake Energy’s peers Rice Energy (RICE) and EQT (EQT) have short interest ratios of ~3.8% and ~18.4, respectively.

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