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

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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%.

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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.

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