uploads///Part  Short interest

What Praxair’s Short Interest Suggests before 4Q17 Earnings

By

Updated

Praxair’s short interest

The latest short interest data as of December 30, 2017, show that Praxair’s (PX) short interest has increased since its 3Q17 earnings were announced on October 26, 2017. However, in the past month, it has shown declining trends, suggesting improvement in sentiment for the stock. As of December 29, 2017, Praxair’s short interest as a percentage of outstanding shares stood at 1.8%. Its short interest rose from 1.4% on October 26, 2017.

Article continues below advertisement

Have the sentiments for Praxair improved?

Praxair’s short interest increased to 2.2% in November 2017. However, there are some positive business developments, including opening a new advanced jet engine coating facility in Ellisville with GE and increasing the price of helium and other industrial gases. They could help drive future revenues and earnings growth and possibly improve sentiments for the stock. Praxair’s short interest has declined from 2.2% to 1.8%. The future direction of its short interest now depends on its upcoming 4Q17 earnings.

Short interest ratio compared to its peer

In terms of the number of shares, Praxair’ short interest was ~4.9 million shares. Its average trading volume was ~1.7 million shares. That converts its short interest ratio to ~3.0x, which indicates that it requires three days to cover all its short positions. Praxair’s peer Air Products & Chemicals’ (APD) short interest was 1.9 million shares, and its average trading volume was 889,000. That suggests that APD’s short interest ratio is ~2.0x, which implies that it requires two days to cover all of its short positions.

Investors can indirectly hold Praxair by investing in the PowerShares Dynamic Large Cap Growth ETF (PWB), which has invested 1.4% of its portfolio in Praxair. The fund also provides exposure to Boeing (BA) and Texas Instruments (TXN), with weights of 4.1% and 3.7%, respectively.

Advertisement

More From Market Realist