The 6 Most Shorted Nasdaq Stocks

Investing

Published: August 10, 2017 6:15 am

Last Updated: March 13, 2020 8:01 pm

Perhaps it was the summer heat, but the moves in the six most shorted stocks traded on the Nasdaq between July 14 and July 31 suggest that short sellers still were not sure on what to make of major indexes remaining near all-time highs even though the bull run is well more than eight years old now. The short interest swings were mixed but mostly mild.

Bucking the trend in the final two weeks of last month was the largest broadcasting and cable television company in the world by revenue, as short sellers got out of the way, allowing it to slip out of the top six. The number one on the list saw a gain of more than 10 million shares short, though that was just a little more than 4%.

Also note that only two Nasdaq stocks still had more than 100 million shares short as of the end of July.

Sirius XM

The almost 266.52 million Sirius XM Holdings Inc. (NASDAQ: SIRI) shares short by the end of last month was almost 11 million more than on the previous settlement date. That was the greatest number of shares short since March, and it represented 18.5% of the total float. As the average daily volume recovered from a year-to-date low, the days to cover dropped from more than 16, a year-to-date high, to near 11.

Sirius posted record listener base numbers in the period. The stock ended the two weeks about 7% higher than where it began it, though it was down almost 2% at one point in the interval. The Nasdaq rose only fractionally by the settlement date. The shares closed on Wednesday at $5.55 apiece, after hitting a new 52-week high of $5.89 near the end of July. The 52-week low of $4.05 was seen last summer.

AMD

By the conclusion of July, Advanced Micro Devices Inc. (NASDAQ: AMD) had more than 152.29 million shares short. That was a gain of less than 2% from the total on the previous settlement date, and it followed a 3% short interest rise in the previous period. The most recent reading represented 17.3% of the company’s float. It still would take less than two days to cover all short positions.

Analysts were cautiously optimistic after AMD’s most recent earnings report. The July 31 share price was more than 2% lower than on the previous settlement date, though the shares had been up about 5% a couple of days earlier. The stock closed most recently at $12.83, which is around 13% higher year to date. Shares have changed hands between $5.66 and $15.65 apiece in the past year.

Intel

More than 92.38 million Intel Corp. (NASDAQ: INTC) shares were sold short as of the latest settlement date. Short interest fell less than 2% during the period to the smallest figure seen since April. It was also some 2.0% of the company’s float. The year to date peak was more than 102 million, reported back in June. As of the latest settlement date, it would take about four days to cover all short positions.

The analyst reaction to Intel’s most recent quarterly numbers was muted. Though the shares ended the short interest period more than 2% higher, it climbed another 3% shortly thereafter. The most recent close at $36.59 a share compares to a 52-week trading range of $33.23 and $38.45, and it is around 3% higher than six months ago.

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Opko Health

Opko Health Inc.’s (NASDAQ: OPK) short interest of around 72.81 million shares on the most recent settlement date was almost 2% lower than in the previous period, and it was the smallest number of shares short since early in the year. The latest figure was 21.8% of the total float. The daily average volume shrank again between the settlement dates, lifting the days to cover from nearly 18 to a little more than 19.

For well more than a year, the CEO frequently has bought batches of Opko shares. The stock closed most recently at $6.43 a share, in a 52-week trading range of $5.99 to $12.15. During the two-week short-interest period, the share price rose more than 5%, though it pulled back afterward. The stock now is almost 31% lower than at the beginning of the year.

Synergy Pharmaceuticals

Short interest at Synergy Pharmaceuticals Inc. (NASDAQ: SGYP) totaled more than 60.01 million shares on July 31, which was more than 1% fewer than on the prior settlement date. It represented a whopping 26.7% of the total float. Note that the number of shares short has been in this ballpark since the end of May. The days to cover ticked down from more than 22 to near 21 during the latest period.

This biopharmaceutical company is focused on treatments for constipation and irritable bowel syndrome. Short sellers watched the stock retreat more than 13% during those two weeks. The most recent closing share price was $3.53, which is more than 46% lower than six months ago. The shares have traded hands between $3.34 and $7.15 in the past year.

Novavax

The number of Novavax Inc. (NASDAQ: NVAX) shares short totaled more than 55.51 million on July 31. That was up more than 1% from two weeks earlier, but it still was the second lowest level of short interest in the past year. The latest figure represented 19.9% of the total float. Because the average daily trading volume spiked to a year-to-date high, the days to cover tumbled from more than 19 to near three.

Novavax posted positive data from its Phase 2 vaccine trial late last month. Short sellers watched the stock surge about 29% but then end those two weeks down about 11%. The stock retreated more afterward and closed most recently at $0.99, which is down about 25% from six months ago. The 52-week low of $0.73 happened back in May, and the 52-week high of $8.49 was seen last September.

And Others

Rounding out the top 10 were Micron Technology Inc. (NASDAQ: MU), Comcast Corp. (NASDAQ: CMCSA), Microsoft Corp. (NASDAQ: MSFT) and Oclaro Inc. (NASDAQ: OCLR). Comcast was the big mover here, with a double-digit percentage decline in its short interest during those two weeks.

Note that short interest in Apple Inc. (NASDAQ: AAPL) rose somewhat from a 52-week low during the period, but it remains well outside the list of the top 10 most shorted Nasdaq stocks. Lingering just beyond the spotlight of the top 10 were Ascena Retail Group Inc. (NASDAQ: ASNA) and Groupon Inc. (NASDAQ: GRPN).