Short Sellers Mixed on Oil Stocks, but One Big Winner and One Big Loser Stand Out
Crude oil prices have fallen since the outbreak of coronavirus in China was revealed in early January. Short sellers have been selective with their bets and continue to be so.
Crude oil traded around $50.70 a barrel early Wednesday, down by about $2.80 in the past week and about $0.60 short of a 52-week low posted earlier this week. Over the past month, the price of West Texas Intermediate (WTI) crude for immediate delivery has tumbled by about $8 a barrel.
Of the companies we watch, short interest increased on three of six energy stocks during the two-week reporting period ending January 31. Global concerns related to the impact of the coronavirus outbreak first revealed on January 7 have abated somewhat in the past several days.
Chevron Corp. (NYSE: CVX) saw short interest decrease by 2% to 20.78 million shares, which represents about 1.1% of the company’s float. Days to cover slipped from four to three. In the two-week short interest period, the stock’s share price dropped by about 6.9%. Its 52-week range is $105.40 to $127.34, and it closed at $111.21 on Tuesday, up by about 1.3% for the day.
Exxon Mobil Corp.’s (NYSE: XOM) short interest rose by 7% to 42.5 million shares, or about 1% of the company’s float. In the two weeks to January 31, the share price fell by about 9.6%. The stock’s 52-week range is $59.62 to $83.49, and it closed at $60.53 on Tuesday, up by about 1% for the day. Days to cover remained at three.
BP PLC (NYSE: BP) saw a rise of 16% in short interest during the two-week period. About 0.1% of the total float, or 3.76 million American depositary shares, were short, and days to cover remained less than one. The company’s shares traded down by 7% over the period, and they closed Tuesday at $36.55, up by about 1% for the day, in a 52-week range of $35.07 to $45.38.
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ConocoPhillips (NYSE: COP) short interest plunged by 31% in the latter half of January. Some 8.38 million shares were short, representing about 0.8% of the company’s total float. Days to cover fell from two to one, and the stock price dropped by 7.7% during the two weeks. Shares closed Tuesday at $58.71, up by about 1.5% for the day, in a 52-week range of $50.13 to $71.01.
Petróleo Brasileiro S.A. (NYSE: PBR), or Petrobras, short interest soared by 53% during the two-week period. Some 35.54 million ADSs were short as of January 31, less than 1% of the total float. They closed at $14.82 on Tuesday, up by about 2.9% for the day, in a 52-week range of $12.68 to $17.90. Petrobras traded down by around 5.9% in the short interest period, and days to cover rose from one to two.
Occidental Petroleum Corp. (NYSE: OXY) saw short interest drop by 9% to 25.31 million shares. Days to cover dipped from three to two, and about 2.8% of the company’s shares were short. In the two weeks to January 31, the share price plunged by about 15%. The stock’s 52-week range is $37.25 to $68.83, and shares closed Tuesday at $41.17, up by about 1.7% for the day.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
