Short interest in Chevron
The short interest in Chevron (CVX) has been very volatile in the second quarter. While the short interest in the stock rose from 0.90% on April 1 to 1.49% on April 30, it has fallen to 0.86%. Overall, the short interest in Chevron has fallen marginally in the second quarter. During the same period, Chevron’s stock price has risen 1.4%.
Why did the sentiment change?
Chevron stock saw a blip in its short interest in the first quarter due to the expected acquisition of Anadarko. On April 12, Chevron agreed to buy Anadarko (APC). According to the agreement, Chevron was supposed to buy all of Anadarko’s shares in an equity and cash deal. The news raised the short interest in the stock to 1.49%.
On May 5, Occidental Petroleum (OXY) submitted an updated bid to Anadarko, which Anadarko’s board of directors held as superior. Occidental Petroleum’s revised bid represented a 23% premium to Chevron’s bid considering the closing prices on May 6.
Chevron decided not to go ahead with the deal before the market opened on May 9. On the same day, Chevron stock opened 3.1% higher, which indicated that the markets agreed with Chevron’s decision. The short interest in the stock fell to 0.86% after the deal was terminated.
Peers’ short interest
The short interest in BP (BP) and Petrobras (PBR) fell by 0.02 percentage points and 0.06 percentage points, respectively, since April 1 to the current level of 0.13% and 0.69%. However, the short interest in PetroChina (PTR) has risen by 0.03 percentage points since April 1 to the current level of 0.07%. BP and PetroChina’s stock prices have fallen 2.9% and 14.1%, respectively, since April 1. Petrobras stock increased 4.4% in the second quarter.