Short interest in Baker Hughes
Short interest in Baker Hughes (BHGE) as a percentage of its float was 5.2% as of July 5, 2018, compared to 3.4% as of July 5, 2017. Since July 5, 2017, short interest in BHGE has doubled. So, investors have increased negative bets on BHGE in the past year. During the same period, BHGE’s stock price has decreased ~10%.
Short interest in Baker Hughes’s peers
Since July 5, 2017, short interest in ION Geophysical (IO) has decreased 57%, while IO’s stock price increased 477%. Since April 12, 2017, short interest in NOW (DNOW) has gone up 58%, while its stock price decreased 16.5%. Short interest in CARBO Ceramics (CRR) has decreased 1% during the same period, while its stock price increased 35%. So, investors’ negative bets on IO and CRR decreased, while short interest in DNOW has increased in the past year. Typically, fewer investors expect a stock’s price to fall if short interest decreases.
Let’s look at Baker Hughes’s correlation with crude oil in the following part of the series.