How’s Deere’s Short Interest Trending?

Deere’s short interest

The latest short interest report on December 18 indicated that Deere’s (DE) short interest has moved above 2% of its outstanding shares, which indicates that the negative sentiment for the stock is rising. Deere’s short interest as a percentage of its outstanding shares increased to 2.1%, which indicates a marginal increase from the previous report.

How’s Deere’s Short Interest Trending?

The trend indicates that Deere’s short interest is building when the stock price increases. Volatile markets and the possibility of economic growth attracts the bears. Deere’s short interest could continue to increase. However, Deere’s earnings for the first quarter of 2019 will likely set the tone for fiscal 2019. If Deere meets its guidance, the short interest could fall from the current levels.

Peer comparison

Deere’s short interest is ~6.72 million shares, while its average trading volume is ~2.64 million shares. As a result, Deere’s short interest ratio is 2.54x, which indicates that it would take two days to cover all of the short positions in Deere. Deere’s peers have the following short interest:

  • Caterpillar’s (CAT) short interest is ~8.49 million shares with the average number of shares traded at 6.59 million. Caterpillar’s short interest ratio is ~1.3x, which indicates that it would take two days to cover its short positions.
  • AGCO’s (AGCO) short interest ratio is 4.4x, which means that it would take four days to cover its short positions.
  • 3M’s (MMM) short interest ratio is 2.6x, which indicates it would take three days to cover its short positions.

Investors could hold Deere indirectly through the VanEck Vectors Agribusiness ETF (MOO), which has invested 8.4% of its portfolio in Deere as of December 28.