Short sellers continue to hold huge positions not only in troubled companies like BlackBerry and Staples, but also in blue chips like Microsoft. As of April 15, the most recent settlement date, the eight most shorted stocks traded on the Nasdaq all had short positions of more than 80 million shares. For BlackBerry, that was 20% of the float, while at Frontier Communications it was almost as much.
Source: bfishshadow via Wikimedia Commons
The number of Sirius XM Holdings Inc. (NASDAQ: SIRI) shares short decreased by more than 8.7 million in the period to about 233.45 million. That ended three straight periods of growing short interest and represents 8.2% of the float. It would take more than two days to cover all short positions. Last week, Sirius XM delivered a strong earnings report.
Intel Corp. (NASDAQ: INTC) had a 8.5% decline in short interest to 202.97 million shares during the period in which it posted solid, if uninspiring first-quarter numbers. That totaled 4.1% of the company’s float, and the days to cover dropped to less than six as average daily volume rose.
The short interest in Frontier Communications Corp. (NASDAQ: FTR) dropped 5.4% from the previous period but still came to more than 189.39 million shares. That was 19.1% of the telecom’s float, and it would take more than 16 days to cover all short positions.
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Micron Technology Inc.’s (NASDAQ: MU) short interest shrank from 117.55 million shares to 115.49 million by mid-April, after posting better-than-expected quarterly results. That was still 11.0% of the company’s float. The average daily volume increased in the period, and the days to cover fell to less than three.
BlackBerry Ltd. (NASDAQ: BBRY) saw the only increase in short interest among those featured here, a 3.2% gain to more than 102.47 million shares. That took back most of the decline in the previous period, and as mentioned above it was 21.0% of the total float. The days to cover rose to around seven in the period when BlackBerry said it would part ways with T-Mobile.
The number of Gilead Sciences Inc. (NASDAQ: GILD) shares short was essentially the same as in the previous period. The more than 91 million shares short represent 6.0% of the float. At the current average daily volume, it would take about four days to cover all short positions. The response to the most recent earnings report was muted as well.
Microsoft Corp. (NASDAQ: MSFT) all but wrapped up its acquisition of Nokia’s handset business in the period, but it saw little change in its short interest. The 90.64 million shares represent 1.2% of Microsoft’s float, still near the year-to-date peak. It would take more than two days to close out all short positions.
The short interest in Staples Inc. (NASDAQ: SPLS) slipped 6.4% during the period to total more than 83.83 million shares. That was 13.0% of the total float, and the smallest number of shares short since January. The days to cover was less than six. Staples may be in the next wave of dying retailers.
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