BP’s BP short percent of float has increased by 11.76% since its last report. The company recently reported that it has 5.40 million shares sold short, which represents 0.19% of all regular shares available for trading. Based on its trading volume, it would take traders 1.02 days on average to cover their short positions.
Why Short Interest Matters
Short interest refers to the number of shares that have been sold short but have not yet been covered or closed out. Short selling occurs when a trader sells shares of a company they do not own, hoping that the price will decrease. Traders profit from short selling if the stock price falls, but they suffer losses if it rises.
Keeping track of short interest is important because it can serve as an indicator of market sentiment towards a specific stock. An increase in short interest can indicate that investors have become more bearish, while a decrease can signify increased bullishness.
See Also: List of the most shorted stocks
BP Short Interest Graph (3 Months)
As shown in the above chart, the percentage of shares sold short for BP has grown since its last report. However, this does not necessarily mean that the stock will decline in the near future. Traders should be aware that more shares are being shorted, though.
Comparing BP’s Short Interest Against Its Peers
Comparing a company’s short interest to that of its peers is a common method used by analysts and investors to assess its performance. A peer is another company with similar characteristics, such as industry, size, age, and financial structure. You can find a company’s peer group by reading its 10-K, proxy filing, or conducting your own similarity analysis.
According to Benzinga Pro, BP’s peer group has an average short interest as a percentage of float of 3.39%. This suggests that BP has less short interest compared to most of its peers.
Did you know that increasing short interest in a stock can actually be bullish? This post by Benzinga Money explains how you can profit from it.
This article was generated by Benzinga’s automated content engine and was reviewed by an editor.
