RPM International’s short interest
The latest short interest report as of March 15, 2018, indicates that RPM International’s (RPM) short interest has increased since the beginning of 2018 and on a biweekly basis as well. RPM International’s short interest as a percentage of its outstanding shares increased from 2.1% on February 28, 2018, to 2.5% on March 15, 2018. At the same time, the stock price increased from $49.77 to $50.39.
RPM International’s short interest has increased since the beginning of 2018 mainly due to prevailing volatile conditions in the markets. Recently, there have been sell-offs due to increased concerns that the Fed will enact more rate hikes in 2018. There have also been trade war tensions between the US and China. If RPM International manages to beat analysts’ estimates in the upcoming quarter, the numbers could improve.
RPM International’s short interest is ~8 million shares, while its average trading volume is ~2.9 million shares. As a result, RPM International’s interest ratio is 3.0x, which indicates that it would take three days to cover all of its short positions. Peers’ short interest data are as follows:
- Sherwin-Williams’ (SHW) short interest is ~1.9 million shares with an average number of shares traded of 635,000. Sherwin-Williams’ short interest ratio is ~3.0x, which indicates that it would take three days to cover its short positions.
- PPG Industries’ (PPG) short interest ratio is 4.9x, which means that it would take five days to cover its short positions.
- Axalta (AXTA) stock would require four days to cover its short positions.
Investors could hold RPM International indirectly through the SPDR S&P Dividend ETF (SDY). SDY has invested 1.0% of its portfolio in RPM International as of March 28, 2018.