uploads/2018/10/SI-11.jpg

Has Short Interest in XOM Plunged ahead of Its Q3 Earnings?

By

Updated

Short interest in ExxonMobil

Short interest as a percentage of outstanding shares in ExxonMobil (XOM) has fallen from 0.74% at the beginning of the third quarter on July 2 to its current level of 0.67%, implying that the bearish sentiment in the stock has decreased. In the same period, ExxonMobil stock has fallen 0.3%.

The rise in positive sentiments in ExxonMobil could be the result of an increase in the US equity market since July 2. The SPDR S&P 500 ETF (SPY) has risen 3.2% since that time. Also, though ExxonMobil’s second-quarter earnings missed estimates, they rose year-over-year, helping to build positive sentiments in its stock.

The recent rise in positive sentiments in the stock could be in anticipation of better third-quarter earnings for the company. Wall Street analysts expect ExxonMobil’s third-quarter earnings to touch a three-year high.

Article continues below advertisement

Peers’ short interests

The short interests in ExxonMobil’s peers Chevron (CVX) and Petrobras (PBR) have fallen 0.10 percentage points and 0.46 percentage points, respectively, since July 2. Currently, the short interests in Chevron and Petrobras stand at 0.92% and 1.26%, respectively. Short interest in Suncor Energy (SU) has fallen 0.14 percentage points since July 2 to its current level of 0.28%.

Pre-earnings series overview

In this series, we’ve reviewed ExxonMobil’s EPS estimate and segmental earnings prospects for the third quarter. We’ve also evaluated its stock performance, moving average trend, and stock price forecast range for the 16-day period leading up to November 2 based on its current implied volatility.

We’ve looked at analysts’ ratings for the stock ahead of its third-quarter earnings results, and we’ve concluded the series with a review of its short interest.

Advertisement

More From Market Realist