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Gauging Short Interest in National Oilwell Varco Stock

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Short interest in National Oilwell Varco

Short interest in National Oilwell Varco (NOV) as a percentage of its float was 8.6% as of October 9. Since June 30, short interest in NOV has risen 17%. NOV’s stock price and short interest as a percentage of float have been inversely related since October 2015. However, since June 30, NOV’s stock price has risen ~7%. So investors increased negative bets on NOV, and many investors expect the stock’s price to fall.

NOV is 5.8% of the iShares US Oil Equipment & Services ETF (IEZ). IEZ has risen 3% since June 30. The S&P 500 Index (SPX-INDEX) has risen 5%.

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Did crude oil prices affect investor sentiment?

Crude oil prices have been bullish since June 2017, rising 7% from June 30 to October 9. Investors’ sentiment toward the energy market has also been bullish. In effect, many oilfield services companies’ stock prices have been upbeat since June. 

Short interest in National Oilwell Varco’s peers

Since June 30, short interest in Oil States International (OIS) has risen 7% while OIS’s stock price fallen 7%. Since June 30, 2017, short interest in TETRA Technologies (TTI) has fallen 8%, and its stock price fell 4%. Short interest in Key Energy Services (KEG) has fallen 8% while its stock price fell 31%. So, investors cut their negative bets on TTI and KEG.

We’ll check out National Oilwell Varco’s correlation with crude oil in the next part of this series.

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