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Average short interest across S&P 500 financial stocks rose to 1.59% of shares float as of the end of August, compared to 1.51% at July end.
The S&P 500’s financial sector (NYSEARCA:XLF) was up 18.03%, as compared to the broader S&P 500 index’s rise of 17.32% since the start of the year.
The largest contributor to the index, Berkshire Hathaway (BRK.B) had a short interest of 1.1% of the total float, while the next biggest contributor, J.P. Morgan’s (JPM) short interest, stood at 0.98%.
Industry Analysis:
Consumer Finance claimed the top spot again for being the most shorted industry within the financial sector, with 2.22% short interest as of August end, up from 2.06% as of the end of July.
Capital Markets is the second most shorted industry within the financial sector, with 2.05% short interest as of end-August, up from 1.92% in July.
Financial Services, came in at third, with short interest at 1.92% at August end, up from 1.69% as of July’s end.
Short interest, which could be an indicator of pessimism, calculates the number of shares sold against the company float. (Short Interest % = Number of Shares Sold Short ÷ Stock Float)
Most shorted stocks:
- Franklin Resources (BEN) – 8.52% vs. 7.72% last month
- FactSet Research System (FDS) – 6.02% vs. 5.49%
- T Rowe Price (TROW) – 4.55% vs. 4.21%
- Raymond James Financial (RJF) – 4.20% vs. 3.36%
- Regions Financial (RF) – 4.06% vs. 4.45%
Least shorted stocks:
- Mastercard (MA) – 0.72% vs. 0.63%
- Nasdaq (NDAQ) – 0.74% vs. 0.84%
- Willis Towers Watson (WTW) – 0.74% vs. 0.88%
- Allstate (ALL) – 0.79% vs. 0.89%
- Moody’s (MCO) – 0.85% vs. 0.77%
