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Analyzing the Short Interest in Encana Stock

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Oct. 11 2017, Updated 6:40 a.m. ET

Short interest in Encana stock

As of September 15, 2017, Encana’s (ECA) total shares shorted (or short interest) stood at ~21.51 million, while its average daily volume is ~10.49 million. The short interest ratio for Encana stock is ~2.05x. Encana’s short interest ratio has a 52-week high of 2.29x and a 52-week low of 0.73x. The stock’s average daily volume is calculated for the short interest reporting period from September 1, 2017, to September 15, 2017.

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From the perspective of shares outstanding, the current short interest in Encana stock as a percentage of shares outstanding is ~2.2%. Since the beginning of the stock’s rally from the end of June 2017, the short interest in Encana stock as a percentage of shares outstanding has fallen from ~1.4% to ~2.2% in four months. During this period, Encana stock has risen ~41%. Short sellers increased their short bets on Encana stock as the stock price increased. It could mean that they think that Encana stock really could be short-lived. To learn more about the stock’s recent price performance, read Part 1 in this series.

Short interest in context

As of September 15, 2017, other oil and gas exploration and production companies like California Resources (CRC), Range Resources (RRC), and Southwestern Energy (SWN) have short interest as a percentage of shares outstanding of ~39.4%, ~15.1%, and ~7.8%, respectively. The short interest in Encana stock as a percentage of shares outstanding is lower compared to many other upstream stocks from the SPDR S&P Oil and Gas Exploration & Production ETF (XOP).

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