24/7 Wall St.

As the third quarter of the year wound to a close, the new iPhones had already been revealed, the trade war with China continued to ramp up, the Federal Reserve raised rates again, and the midterm elections and the holiday season were still ahead. Yet, the stock market kept trading near all-time highs, and in a record bull run.

Judging by the most shorted stocks traded on the New York Stock Exchange between the September 14 and September 28 settlement dates, those sellers were focused on a couple of favorites, including GE, which jumped back into the top six on a surge in its shares short.

Note that the six most shorted NYSE stocks had more than 110 million shares short at the end of the most recent settlement period. In fact, all of the top 10 had short interest of more than 100 million shares.

Rite Aid

The reported number of Rite Aid Corp. (NYSE: RAD) shares sold short dropped by more than 3.1 million to 159.07 million or so between the most recent settlement dates, yet this specialty retailer stayed atop the list. That was 15.1% of the company’s total float, as well as more than 17 million less than the highest level of short interest so far this year. The average daily trading volume rose during the period, and the days to cover figure slipped from about 13 to 12.

Rite Aid is among some well-known stocks that are missing out on the bull market. Its share price ended the latest settlement date more than 2% lower, while the S&P 500 gained about 1% in that time. In the past week, the stock rose about 4% but surrendered that gain, and it closed most recently at $1.14 a share, after hitting a 52-week low of $1.12. That was more than 30% lower than 90 days ago. Rite Aid shares have traded as high as $2.55 apiece in the past 52 weeks.

Snap

Jumping into the number two spot on the list was Snap Inc. (NYSE: SNAP), which saw the number of its shares short pop more than 11% in the latter half of September. The more than 140.73 million shares reported most recently represented 25.1% of the social media and camera company’s total float. At the daily average trading volume at the end of last month, it would take about five days for investors to cover all short positions.

Snap shares have been hitting new 52-week lows recently. The stock ended the short interest period more than 11% lower, and it has pulled back more since then. Snap’s share price was last seen at $7.00, after falling to a new 52-week low of $6.83 earlier in the day. The 52-week high, reached early this year, was $21.22 a share. The stock now is down almost 49% in the past 90 days.

J.C. Penney

The number of J.C. Penney Co. Inc. (NYSE: JCP) shares short increased by nearly 3% in the latest period to around 133.74 million. Note that short interest has increased in six of the past 10 periods, and it was a whopping 43.6% of the struggling retailer’s float most recently. The daily average trading volume grew during the two-week period, so the days to cover pulled back from about 13 to 10.

Last month, J.C. Penney appeared to be on its way to becoming a penny stock. Its share price had risen almost 10% but ended the two-week period down almost 10%, most of that drop near the settlement date. The stock has been relatively flat since then and closed most recently at $1.67 a share. Yet, that is more than 30% lower over the past three months. The 52-week low, seen last week, was $1.55, while the 52-week high of $4.75 was reached early this year.

Bank of America

Bank of America Corp.’s (NYSE: BAC) short interest in the latest two-week period slipped by less than 2% to 124.29 million or so shares, but the stock still climbed a couple of spots on the list. The latest reading represented just 1.2% of the total float. As of the end of September, it would take about two days to cover all short positions, after the daily average volume rose for the second consecutive period.

Bank of America remains one of Warren Buffett’s big stakes, but is it undervalued? Its share price ended the latest settlement period with a decline of about 3%, though it had been more than 3% higher at one point. The stock closed most recently at $29.98 a share, which is up more than 3% from 90 days ago. The shares have changed hands between $25.12 and $33.05 in the past year.

General Electric

General Electric Co. (NYSE: GE) ended up back in the top six because the number of its shares jumped more than 23% in the latter half of September. The more than 123.79 million shares reported most recently represented 1.4% of the conglomerate’s total float, although that compares to the year-to-date high above 155 million seen back in March. The daily average trading volume increased sharply in the latest period, and the days to cover ticked down to one.

GE is another well-known company that seems to be missing out on the bull market. The stock ended the period more than 9% lower, though it had been up more than 4% earlier in the period. In those two weeks, the Dow increased less than 2%. GE’s share price was last seen at $13.55, which compares with a 52-week low of $11.21 last month. The 52-week high, from about a year ago, was $23.86 a share. The stock now is up a little more than 1% in the past 90 days.

Ford

Ford Motor Co. (NYSE: F) also returned to the top six even though the number of its shares short in the latter weeks of the month slipped a bit to 117.86 million or so, which was 3.0% of the iconic automaker’s float. At the average daily volume on the latest settlement date, it would take about two days for sellers to cover all their short positions.

This is yet another stock that doesn’t know that it is a raging bull market. The share price ended the latest settlement period more than 1% lower, after having been up about 6% at one point. The stock has pulled back more than 3% in the past week and closed most recently at $8.95. That is a 52-week low, as well as about 2% lower than three months ago. The shares have changed hands as high as $13.48 apiece in the past 52 weeks.

24/7 Wall St.
Are All of Warren Buffett’s Top Stock Picks Still Grossly Undervalued?

And the Rest

Rounding out the top 10 were Infosys Ltd. (NYSE: INFY), Chesapeake Energy Corp. (NYSE: CHK), Weatherford International PLC (NYSE: WFT) and Transocean Ltd. (NYSE: RIG). Shrinking short interest allowed Chesapeake and Infosys to drop out of the top six between the most recent settlement dates, while Transocean saw its second consecutive surge in the number of its shares short.

Lingering outside the spotlight of the top 10 most shorted NYSE stocks were Alibaba Group Holding Ltd. (NYSE: BABA) and Sprint Corp. (NYSE: S). Note that Fortive Corp.’s (NYSE: FTV) short interest doubled in the period, but it has not yet cracked the top 10