Short interest in Halliburton
Short interest in Halliburton (HAL) as a percentage of float was 1.6% as of June 7. That compares to ~3% on June 7, 2017. Short interest in HAL stock has decreased 45% in the year, and its stock has risen ~9%. So investors’ negative bets on Halliburton have declined in the past year.
As you can see in the graph below, short interest as a percentage of float and HAL stock have been inversely related for the past two years.
Short interest in HAL’s industry peers
Since June 7, 2017, short interest in Flotek Industries (FTK) has decreased ~41% as of June 7, 2018. FTK stock has fallen 63% in that period. Short interest in Precision Drilling (PDS) has decreased 73% since June 7, 2017, while its stock has risen 1% during that period. So investors decreased their negative bets in FTK and PDS in the past year. Typically, fewer investors expect a stock to fall if short interest as a percentage of float decreases.
On the other hand, short interest in Oceaneering International (OII) has increased 26% since June 7, 2017. OII stock has fallen 4% during that period.
What’s HAL’s correlation with the price of crude oil? Let’s look at that in the next part of this series.