Truist Financial’s TFC short percent of float has decreased by 27.7% since its last report. The company recently disclosed that it has 20.42 million shares sold short, which represents 1.54% of all regular shares available for trading. Based on its trading volume, traders would need an average of 1.92 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, hoping that the stock price will decline. Traders profit from short selling if the stock price falls, but incur losses if it rises.
Tracking short interest is important as it can serve as an indicator of market sentiment towards a specific stock. An increase in short interest can suggest that investors have turned more bearish, while a decrease in short interest can indicate a more bullish sentiment.
See Also: List of the most shorted stocks
Truist Financial Short Interest Graph (3 Months)
As depicted in the chart above, the percentage of shares sold short for Truist Financial has declined since the last report. However, this does not necessarily imply that the stock will rise in the near term. Traders should simply be aware that fewer shares are being shorted.
Comparing Truist Financial’s Short Interest Against Its Peers
Comparing a company to its peers is a popular technique among analysts and investors when evaluating its performance. Peers are other companies that share 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 Truist Financial’s peer group is 4.80%. Therefore, the company has lower short interest compared to most of its peers.
Did you know that an increase in short interest can actually be positive 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 reviewed by an editor.