What Major Banks’ Short Interest Is Saying Ahead of Earnings

By Chris Lange Updated Jan 11, 4:38PM EST · Published Oct 10, 8:30AM EDT

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What Major Banks’ Short Interest Is Saying Ahead of Earnings — © BrianAJackson / Getty Images

The financial sector was a major part of the Great Recession, and it has been a major part of the recovery and raging bull market since then. Generally speaking, the major financial institutions in the United States are a good barometer of the current state of U.S. markets.

So when short sellers make a play against these major banks, they are effectively betting for a downturn. Conversely, when they back off they might be expecting a surge. Granted, some plays are directly against individual companies, like we saw with Wells Fargo early in 2017.

The September 28 short interest data have been compared with the previous figures, and short interest in most of these selected big bank stocks decreased.

Keep in mind that a few of these major banks are reporting earnings later this week to kick off earnings season.

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Bank of America Corp. (NYSE: BAC) saw its short interest fall to 124.30 million shares. The previous level was 126.38 million. Shares were last seen trading at $29.98, in a 52-week range of $25.12 to $33.05.

The number of JPMorgan Chase & Co. (NYSE: JPM) shares short fell to 18.66 million from the previous level of 19.31 million. Shares recently traded at $114.52, in a 52-week range of $94.96 to $119.33.

Citigroup Inc. (NYSE: C) short interest increased to 18.37 million from the previous level of 16.05 million. Shares were trading at $71.89, in a 52-week range of $64.38 to $80.70.

Wells Fargo & Co. (NYSE: WFC) short interest fell to 19.66 million shares from the previous reading of 29.73 million. Shares were trading at $53.53, within a 52-week range of $50.26 to $66.31.

Short interest in Goldman Sachs Group Inc. (NYSE: GS) decreased to 3.53 million shares from the previous 4.65 million. The stock recently traded at $222.91, within a 52-week range of $218.89 to $275.31.

Morgan Stanley’s (NYSE: MS) short interest for this settlement date was 12.54 million shares, up from the previous 11.04 million. Shares were changing hands at $46.16, in a 52-week range of $45.94 to $59.38.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.