Honeywell’s short interest

In the previous article, we went through analyst recommendations for Honeywell (HON). In this part, we’ll look at Honeywell’s short interest trends. The latest short interest report from October 31, 2018, suggests that Honeywell’s short interest has stayed under 1% of its outstanding shares. As per the latest report, HON’s short interest is at 0.78% of the outstanding shares, indicating a steady trend since its previous report.

Honeywell’s Short Interest Is Steady: Bears Shy Away

The current level of Honeywell’s short interest suggests that the sentiments on the stock are positive and short traders expect very little downfall in the stock price. Honeywell’s strong third-quarter earnings along with the positive developments in the business like the acquisition of Transnorm have resulted in positive price movement, thus keeping the bears away from further shorting.

Short interest ratios for Honeywell and peers

Honeywell’s short interest was ~6.08 million shares, and its average trading volume was ~3.07 million shares, meaning its short interest ratio was ~2.0x. This ratio indicates it would require two days to cover all short positions. Honeywell’s industrial peers’ short interest ratios are as follows:

  • United Technologies’ (UTX) short interest was 15.24 million shares, and its average number of shares traded was 4.15 million. Thus, its short interest ratio was ~3.7x, which indicates it would take four days to cover all short positions.
  • Textron’s (TXT) short interest was 6.33 million shares, and its average number of shares traded was 1.90 million, meaning it would take three days to cover all short positions.
  • Boeing’s (BA) short interest ratio was ~1.3x, meaning it would take nearly one day to cover all short positions.

Investors can indirectly hold Honeywell through the iShares US Industrials ETF (IYJ). HON accounted for 3.3% of the ETF as of November 14, 2018.

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