Shorting Valero: Mapping the Short Interest Trend ahead of VLO’s 1Q17 Results



Short interest in Valero

Valero Energy (VLO) has seen a rise in its short interest since mid-February 2017. VLO’s short interest ratio, which refers to short interest considered as a percentage of outstanding shares, rose from 3.1% in mid-February to 4.3% in April. 

This rising short interest ratio could imply a rise in the bearish sentiment toward the stock. During the same period, VLO’s stock price fell 5%.

Article continues below advertisement

Peer short interests

By comparison, peers Delek US Holdings (DK), HollyFrontier (HFC), and PBF Energy (PBF) saw sharper rises in their short interests—by 3.7%, 0.8%, and 1.9%, respectively. HollyFrontier’s and PBF’s stock prices fell by 9% and 16%, respectively, during this same period, but Delek stock has remained flat since mid-February.

If you’re looking for exposure to refining and marketing stocks, you might consider the iShares Global Energy ETF (IXC). IXC has ~5% exposure to the energy sector.

In the next and final part of this series, we’ll compare the institutional holdings in Valero Energy (VLO) with those of its major peers.


More From Market Realist