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Air Products and Chemicals’ Short Interest Has Risen Marginally

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Short interest

The latest report of December 14 indicates that Air Products and Chemicals’ (APD) short interest has increased marginally on a sequential biweekly basis. The short interest has increased for the second consecutive week. However, the short interest is just marginally above 1% of Air Products and Chemicals’ outstanding shares. Air Products and Chemicals’ short interest as a percentage of its outstanding shares increased to 1.13 % from 1.06% on November 30.

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The increase in Air Products and Chemicals’ short interest could be due to volatility in the global market. However, the stock probably won’t attract the bears in a big way. There are a lot of positive business developments that will likely drive the growth. Air Products and Chemicals expects a 10% increase in its adjusted EPS for fiscal 2019. Air Products and Chemicals has also been bagging new client orders to improve its backlogs. The company signed a definitive agreement to acquire General Electric’s (GE) gasification business and technology. The company’s other acquisitions include Shell’s coal gasification technology business and Baker Hughes’s Rotoflow Turboexpander business.

Peer comparison

Air Products and Chemicals’ short interest is ~2.5 million shares. The company’s average trading volume is 1.22 million shares. As a result, Air Products and Chemicals’ short interest ratio is 2.04x, which indicates that it would take two days to cover all of the short positions. Peers’ short interest data are as follows:

  • Linde’s (LIN) short interest is at ~6.7 million shares with the average number of shares traded at 4.9 million. Linde’s short interest ratio is ~1.4x, which indicates that it would take one day to cover its short positions.
  • Eastman Chemical’s (EMN) short interest ratio is 1.7x, which means that it would take two days to cover its short positions.

Investors could hold Air Products and Chemicals indirectly by investing in the Invesco DWA Basic Materials Momentum ETF (PYZ). PYZ invests 3.9% of its holdings in Air Products and Chemicals.

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