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Gauging the Short Interest Trend in Apache Stock

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Short interest in Apache’s shares

On November 15, 2017, the short interest as a percentage of float (or short interest ratio) in Apache (APA) stock was ~7.1%. By comparison, the short interest in APA in January 2017 had been 5.4%.

This means that the short interest in APA stock has risen significantly since the beginning of the year. The stock’s price has also dropped significantly. Remember, any rise in short interest indicates a rising bearish sentiment toward a stock.

However, the current short interest levels in APA stock are lower than the peak we saw of 7.4% in July. During this period, APA stock was sliding due to the weakness in oil prices at that time.

The current uptrend in oil prices have pulled APA’s stock higher (though the stock has most recently been declining), and so the short interest in APA stock has fallen from its July 207 peak. Remember, any decline in short interest implies that at least some investors have cut their negative bets on a stock.

Peer short interest

By comparison, peers Cimarex Energy (XEC), Concho Resources (CXO), and Newfield Exploration (NFX) had short interest ratios of 3.4%, ~4.2%, and ~4.5%, respectively, on November 15, 2017.

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