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How DowDuPont’s Short Interest Is Trending ahead of Q2 Results

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DowDuPont’s short interest

The latest short interest data as of July 13 showed that DowDuPont’s (DWDP) short interest had risen marginally on a sequential basis. According to the data, its short interest as a percentage of outstanding shares was 0.86%. Its short interest increased from 0.84% on June 29. For the same period, DWDP stock rose from $65.92 to $66.36. DWDP’s short interest ratio has remained range bound and is well below 1% of the outstanding shares.

DowDuPont’s short interest has been fluctuating within the range. Short interest rose on tensions related to the trade war between China and the US. China has imposed 25% tariffs on several products including agricultural products and chemicals, which will have a negative impact on DowDuPont. However, the amount of the impact remains to be seen.

Short interest ratio for DowDuPont and its peers

In terms of the number of shares, DowDuPont’s short interest was ~20.0 million shares. Its average trading volume was ~7.6 million shares, which means a short interest ratio of ~2.6x. This figure indicates that it would take three days to cover all of its short positions. The short interest ratios for DowDuPont’s peers are as follows:

  • Celanese’s (CE) short interest is ~1.32 million shares. The average number of shares traded is ~0.96 million. As a result, its short interest ratio is ~1.4x, which indicates that it will take one day to cover all of its short positions.
  • Mosaic’s (MOS) short interest is ~13.13 million shares, and its average number of shares traded is ~3.93 million, which indicates that it will take three days to cover all of its short positions.
  • Eastman Chemical’s (EMN) short interest ratio is ~3.8x, which indicates it will take four days to cover all of its short positions.

Investors can hold DowDuPont indirectly by investing in the First Trust Indxx Global Agriculture ETF (FTAG). FTAG invests 10% of its portfolio in DowDuPont as of July 27.

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