The 6 Most Shorted NYSE Stocks

March 12, 2018 by Trey Thoelcke

After volatility roared back into the markets in early February, bringing with it the long overdue 10% correction, things seemed to settle down somewhat as the month wore on. Then volatility spiked again when March arrived, as concerns about rising interest rates were joined by fears of a trade war. Sell-offs can be good for short sellers, depending on how they are positioned and how nimble they are. Judging by the most shorted stocks traded on the New York Stock Exchange between the February 15 to February 28 settlement dates, those sellers were cautious overall, as moves were mostly downward.

Struggling retailer Rite Aid led the trend, with a sharp drop in short interest allowing it to drop from the top six. Bucking that trend, Chesapeake Energy saw the numbers of its shares short jump by a double-digit percentage during those two weeks that included its latest quarterly report.

Note that the six most shorted NYSE stocks all had more than 125 million shares short at the end of the most recent settlement period. In fact, all the top 10 had short interest of more than 100 million shares.

Chesapeake Energy

The number of Chesapeake Energy Corp.’s (NYSE: CHK) shares short has risen in many periods in the past year, but in the latest period it returned to the top spot on this list. A rise of almost 16% brought short interest to more than 207.70 million, or 31.8% of this oil and gas company’s float. At the posted daily average trading volume on the settlement date, it would take about four days to cover all the short positions.

Chesapeake wowed investors with its quarterly results reported in the period. While its share price ended those two weeks about 1% lower, the stock had been up more than 19% at one point. The S&P 500 saw just a fractional decrease between the settlement dates. The stock ended the week trading at $3.10 a share, which is more than 24% lower year to date. The 52-week low of $2.53 was seen last month. Shares have changed hands as high as $6.59 in the past year.

AT&T

AT&T Inc. (NYSE: T) slipped into the number two spot with about a 4% decline in its shares short as of the most recent settlement date. The latest reading of more than 174.63 million is still down from a year-to-date high of over 193 million. In fact, the short interest has shrunk in most recent periods. The latest reading represented 2.8% of the company’s float. As the end of the month, it would take around eight days to cover all short positions, after the average daily trading volume fell sharply.

Analysts still love AT&T stock for its total return. In the final two weeks of February, investors watched the share price creep up more than 1% but end the period down about 2%. The share price has climbed again since then and ended Friday’s trading at $37.05 a share, which is down less than 4% from year to date. AT&T shares have traded hands between $32.55 and $42.70 in the past 52 weeks.

Weatherford

Weatherford International PLC (NYSE: WFT) hangs on to the third spot on the list despite a more than 9% retreat in the number of its shares sold short in the latter two weeks of February. That followed a 12% bump in its short interest in the previous period. The more than 158.66 million shares reported most recently represented 17.9% of the total float. The days to cover reading ended the period at around eight, as the average daily volume shrank.

At least one analyst saw a buying opportunity in Weatherford’s share price moves between the latest settlement dates. Short sellers watched the share price rise more than 12% but then end the period down more than 4%. Afterward, the stock recovered somewhat, and it closed most recently at $2.64 a share, up from a recent 52-week low of $2.42. The 52-week high, reached last April, was $6.86. The stock is now down more than 23% year to date.

General Electric

General Electric Co. (NYSE: GE) saw the number of its shares short increase less than 1% in the final two weeks of the month, a pause after the 5% drop in the previous period. The more than 136.35 million shares reported most recently represented 1.4% of the conglomerate’s total float. The daily average volume dwindled again, and the days to cover reading ended the period at about two.

GE remained the Dow Jones industrial average’s worst performing stock of the year between the latest settlement dates. Shares ended the short interest period almost 6% lower. In that time, the Dow retreated less than 1%. GE’s share price was last seen at $14.94, after sinking to a 52-week low of $13.95 earlier in the month. The 52-week high, which was seen last April, was $30.54 a share. The stock now is about 17% lower year to date.

Bank of America

Bank of America Corp.’s (NYSE: BAC) short interest in the latest two-week period decreased more than 8% to over 128.69 million shares, more than making up for the 6% gain seen in the prior two-week period. The latest figure represents 1.2% of the total float. As of the end of last month, it would take about two days to cover all short positions as the daily average volume pulled back from a year-to-date high.

Bank of America remains a notable Warren Buffet holding on last look. Its share price ended the latest settlement period about where it began it, despite being up around 2% at one point. The stock closed most recently at $32.72 a share. That is more than % higher year to date. The shares have changed hands between $22.07 and this week’s $32.85 in the past year.

Ford

After a decline of more than 3% in Ford Motor Co. (NYSE: F) shares short in the prior period, the pace picked up and the latest period saw about a 7% pullback. That brought the reported number of shares short to nearly 125.117 million. It also represents 3.2% of the total float, and it lifted Ford back into the top six most shorted NYSE stocks. As of the latest settlement date, it would take four days to cover all short positions.

Ford brands failed to wow Consumer Reports in its recent tests. The automaker’s share price ended the latest settlement period less than 2% lower. The stock has risen somewhat since that time, and shares closed most recently at $10.73. That is more than 15% lower since the beginning of the year. The shares have changed hands between $10.14 and $13.48 apiece in the past 52 weeks.

And the Rest

Rounding out the top 10 were Alibaba Group Holding Ltd. (NYSE: BABA), Rite Aid Corp. (NYSE: RAD), Sprint Corp. (NYSE: S) and J.C. Penney Co. Inc. (NYSE: JCP). Short interest shrank for all four of these NYSE stocks, though Rite Aid was the leader of that trend with a double-digit decline in the number of its shares short.

A surge in Ensco Corp. (NYSE: ESV) shares short was not enough to lift it into the top 10 this time. Also lingering with it outside the spotlight of the 10 most shorted NYSE stocks is Vale S.A. (NYSE: VALE) once again. Snap Inc. (NYSE: SNAP) dropped even further from the top ten between the latest settlement dates.

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