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What Short Interest in Southwestern Energy Stock Indicates

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Short interest in Southwestern Energy stock

As of March 29, 2018, Southwestern Energy’s (SWN) total shares shorted (or short interest) stood at ~50.9 million, whereas its average daily volume is ~20.8 million. This means the short interest ratio for SWN stock is ~2.5x. In January 2018, the short interest ratio for SWN’s stock made a 52-week low of ~1.5x. Southwestern Energy’s short interest ratio has a 52-week high of ~3.0x, which was made in December 2017. Here Southwestern Energy stock’s average daily volume is calculated for the short interest reporting period from March 16, 2018, to March 29, 2018.

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When compared with SWN’s total shares outstanding, current short interest in Southwestern Energy’s stock as a percentage of total shares outstanding is at ~8.7%. Since the start of 2018, short interest in Southwestern Energy stock as a percentage of shares outstanding has seen wild swings. However, during the most recent downtrend in SWN’s stock, which started in November 2017, short interest in SWN stock as a percentage of shares outstanding has remained almost unchanged at ~8.7% in four months. During this time, SWN fell ~29%.

Thus, short sellers have retained most of their short positions in SWN’s stock as the stock price decreased, which could mean that they feel that SWN’s stock decline could continue. To know more about SWN stock’s recent price performance, refer to part one of this series.

Other oil and gas producers

As of March 29, 2018, California Resources (CRC), Murphy Oil (MUR), and Marathon Oil (MRO) have short interest as a percentage of total shares outstanding of ~23.8%, ~11.5%, and ~1.8%, respectively.

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