Short Interest in BP: Lower before Its 1Q18 Earnings?

Short interest in BP

BP (BP) has observed a fall in its short interest (percentage of outstanding shares) from 0.20% on January 2 to the current level of 0.16%. A fall in the short interest usually shows that the bearish sentiment for the stock has decreased. During the same period, BP’s stock price rose 2.6%.

Short Interest in BP: Lower before Its 1Q18 Earnings?

Since January 2, BP has observed a rise in positive sentiments likely due to a surge in oil prices. WTI has risen 13.3% since January 2 to $68 per barrel. Wall Street analysts expect a strong performance from BP’s 1Q18 earnings, which could have led to the rise in the positive sentiments. BP is expected to post its 1Q18 earnings on May 1.

Peers’ short interest

Total (TOT) and Statoil (STO) have also witnessed a fall in their short interest by 0.02 percentage points and 0.01 percentage points, respectively, since January 2. Currently, Total and Statoil have their short interest at 0.08% and 0.15%, respectively. Petrobras (PBR) has seen a 0.30 percentage point drop in its short interest since January 2. Currently, the short interest in Petrobras stands at 0.86%.

Since January 2, Total, Statoil, and Petrobras stocks have risen 11.3%, 16.4%, and 33.6%, respectively.

Review

In this series, we reviewed BP’s earnings per share estimate and segmental earnings prospects for 1Q18. We also evaluated BP’s stock performance and moving averages. We calculated BP’s stock price forecast range for the 11-day period before May 1—based on its current implied volatility. In the previous part, we looked at analysts’ ratings before BP’s 1Q18 earnings. In this part, we concluded the series with a review BP’s short interest before its 1Q18 earnings.