Short interest in ETP
Short interest represents the number of shares of a particular stock that have been shorted but haven’t yet been closed out. An increase in short interest indicates that more investors expect a stock’s price to fall.
Short interest in Energy Transfer Partners (ETP) rose from 16.4 million shares on February 15, 2018, to 18.2 million shares on February 28, 2018. The rise in short interest may indicate bearishness for the stock in the short term. Short interest in ETP as a percentage of its float is 3.8%.
Notably, high short interest does not necessarily mean that a stock will fall, because investors selling short may be wrong in their prediction. In fact, the stock’s price may rise as traders buy the stock to cover their short positions.
Short interest in BPL
Short interest in Buckeye Partners (BPL) also rose from ~3.0 million shares to 3.1 million shares on February 28. BPL’s short interest as a percentage of its float is 2.4%. The next short interest report is scheduled to be released on March 26, 2018.
Short interest in EEP and SUN
Short interest in Enbridge Energy Partners (EEP) and Sunoco (SUN) fell 2% and 18%, respectively, on February 28, 2018. Short interest in EEP and SUN as a percentage of float is 2.6% and 2.9%, respectively.
Interestingly, ETP, EEP, BPL, and SUN all have short interest ratios of 3x, meaning it would take approximately three days to cover each of the stocks’ open short positions. In the next part, we’ll look at what institutional investors are doing with their EEP, ETP, BPL, and SUN holdings.