short percent of float has decreased by 4.89% since its last report. The company recently revealed that it has 7.93 million shares sold short, which is 5.06% of all regular shares available for trading. Based on its trading volume, it would take traders an average of 4.86 days 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, anticipating a decline in the stock price. Traders profit from short selling if the stock price falls, but lose if it rises.
Tracking short interest is important because it can serve as an indicator of market sentiment towards a specific stock. An increase in short interest may signify a more bearish outlook from investors, while a decrease in short interest may signal a more optimistic sentiment.
See Also: List of the most shorted stocks
Diamondback Energy Short Interest Graph (3 Months)
As shown in the chart above, the percentage of shares sold short for Diamondback Energy has decreased since its last report. However, this does not necessarily imply that the stock will rise in the immediate future. Traders should be aware that fewer shares are being shorted.
Comparing Diamondback Energy’s Short Interest Against Its Peers
Peer comparison is a popular method among analysts and investors to assess a company’s performance. A company’s peers are other companies with similar characteristics, such as industry, size, age, and financial structure. You can identify a company’s peer group by reading its 10-K, proxy filing, or conducting your own similarity analysis.
According to Benzinga Pro, the average short interest as a percentage of float for Diamondback Energy’s peer group is 6.31%. This implies that the company has lower short interest compared to most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? 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.