Short interest in Schlumberger
Short interest in Schlumberger (SLB) as a percentage of its float was 1.50% on May 25, compared to 1.47% on May 26, 2017. Since May 26, 2017, short interest in SLB has increased 1.4%. So, investors have increased their negative bets on Schlumberger marginally in the past year. As noted in the graph below, SLB’s stock price and short interest as a percentage of float have mostly been inversely related since May 2016.
Schlumberger comprises 14.3% of the iShares US Oil Equipment & Services ETF (IEZ). IEZ tracks an index composed of US equities in the oil equipment and services sector. IEZ has increased 3.0% in the past year. Since May 26, 2017, SLB’s stock price has increased ~1.6%.
Short interest in Schlumberger’s peers
Since May 26, 2017, short interest in Oil States International (OIS) has increased 24.0%, while OIS’s stock price has also increased 24.0%. Short interest in Superior Energy Services (SPN) has decreased 45.0% since May 26, 2017, while its stock price has increased 8.3%. Investors reduced their negative bets on SPN, and they increased their negative bets on OIS in the past year.
Short interest in Key Energy Services (KEG) has decreased 33.0% since May 26, 2017, while its stock price decreased 8.0% during this period. Typically, fewer investors expect the stock’s price to fall if short interest as a percentage of float decreases.
Has SLB’s correlation with crude oil prices decreased? Let’s find this out in the next part of the series.