Short interest in Halliburton
The short interest in Halliburton (HAL) as a percentage of its float is 2.6% as of January 4, 2017—compared to 3.0% as of September 29, 2017. Since September 29, the short interest in Halliburton has fallen 14%. So, investors have cut the negative bets on Halliburton since September 29. Halliburton’s stock price has risen ~12%. Its stock price and short interest as a percentage of float have largely been inversely related since January 2016.
Did crude oil prices impact investors’ sentiment?
Crude oil prices have turned bullish since July 2017—rising 31% from July 3, 2017, to January 4, 2018. Investors’ sentiment towards the energy market has also strengthened. Halliburton accounts for 11.1% of the iShares US Oil Equipment & Services ETF (IEZ). IEZ has risen 8% since September 29, 2017. The S&P 500 Index (SPX-INDEX) has risen 8% since September 29, 2017.
Short interest in Halliburton’s peers
Since September 29, 2017, the short interest in Oil States International (OIS) has risen 6%, while its stock price has risen 23%. So, investors’ negative bets on Oil States International have risen since September 29. The short interest in Superior Energy Services (SPN) has fallen 4%, while its stock price has risen 2% since September 29. The short interest in Key Energy Services (KEG) fell 13% during the same period, while its stock price rose 13%. So, investors’ negative bets on Superior Energy Services and Key Energy Services have fallen since September 29.
Has Halliburton’s correlation with crude oil prices changed in the past three years? We’ll discuss its correlation with crude oil prices in the next part.