Short interest in NOW
On May 23, short interest in NOW (DNOW) as a percentage of its float had risen 145% YoY (year-over-year) to 16.3% from 6.7%, meaning investors’ negative bets rose significantly. DNOW’s stock price fell ~17% in that time period.
Short interest in DNOW’s peers
Peers’ short interest and stock price changes over the year ended May 23 were as follows:
- National Oilwell Varco’s (NOV) short interest fell 12%, while its stock price rose 25%.
- TETRA Technologies’ (TTI) short interest fell 38%, while its stock price rose 31%.
- Fairmount Santrol Holdings’ (FMSA) short interest fell 52%, while its stock price rose 13%.
Therefore, investors decreased their negative bets on NOV, TTI, and FMSA. Typically, fewer investors expect a stock’s price to fall if its short interest decreases.