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PPG Industries’ Short Interest Could Increase after Its Earnings

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Short interest

The latest short interest data from September 28 show that PPG Industries’ (PPG) short interest has fallen. The lower short interest indicates short coverage in the stock. PPG Industries’ short interest fell for five consecutive weeks from the middle of July. The fall also suggests that bearish sentiments in the stock have decreased.

According to the latest report, PPG Industries’ short interest as a percentage of its outstanding shares was ~2.5% on September 28 with the stock price at $109.13.

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The sell-off in the US market in the second week of October might have pushed the short interest higher. Weaker third-quarter earnings might attract more bears, which means an increase in PPG Industries’ short interest. In contrast, the company’s relative strength index of 26 indicates that the stock is already in the “oversold” position.

Short interest ratios

In terms of PPG Industries’ number of shares, the short interest was 6.0 million. The company’s average trading volume is 1.65 million shares, which means that it has a short interest ratio of 4.0x. The ratio indicates that it would take four days to cover all of the stock’s short positions.

Now, let’s take a look at other companies’ short interest ratios:

  • Sherwin-Williams (SHW) has a short interest of 1.36 million shares. The company’s average number of shares traded is 0.66 million. The short interest ratio is 2.06x, which indicates that it will take two days to cover all of the short positions.
  • RPM International’s (RPM) short interest is 2.63 million, while its average number of shares traded is 1.23 million. The company’s short interest ratio indicates that it will take two days to cover all of the short positions.
  • Axalta’s (AXTA) short interest ratio suggests that it will take three days to cover all of the short positions.

Investors could hold PPG Industries indirectly by investing in the Invesco DWA Basic Materials Momentum ETF (PYZ). PYZ has invested 2.1% of its portfolio in PPG Industries as of October 15.

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