Short interest in Halliburton
The short interest in Halliburton (HAL) as a percentage of its float is 2.8% as of October 5, 2017—compared to 3.2% as of June 30, 2017. Since June 30, the short interest in Halliburton has fallen 12%. So, investors have cut their negative bets on Halliburton since June 30. Since then, Halliburton’s stock price has risen ~6%. Halliburton’s stock price and short interest as a percentage of float have largely been inversely related since July 2015.
Did crude oil prices impact investors’ sentiment?
Crude oil prices have turned bullish since June 20, 2017. The prices rose 17% from June 20 to October 5. Investors’ sentiment towards the energy market has also strengthened. The bullishness has impacted many oilfield services companies’ stock prices since late-June. Halliburton accounts for 10.1% of the iShares US Oil Equipment & Services ETF (IEZ). IEZ has risen 4% since June 30, 2017. The S&P 500 Index (SPX-INDEX) has risen 5% since June 30, 2017.
Short interest in Halliburton’s peers
Since June 30, 2017, the short interest in Oil States International (OIS) has risen 7%, while its stock price fell 7%. So, investors’ negative bets on Oil States International have risen since June 30. Since June 30, 2017, the short interest in Superior Energy Services (SPN) has fallen 33%, while its stock price remained unchanged. The short interest in Key Energy Services (KEG) has fallen 8% during the same period, while its stock price has fallen 29%. So, investors’ negative bets on Superior Energy Services and Key Energy Services have fallen since June 30. Key Energy Services’ stock prices also fell during the same period.
Has Halliburton’s correlation with crude oil prices changed in the past three years? We’ll discuss this in the next part.