Market News Video
MNV MNV The 10 Most Popular Large-Caps in ETFs
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

First Week of GRMN November 17th Options Trading
Wednesday, September 20, 11:29 AM ET, by Market News Video Staff

Investors in Garmin Ltd (GRMN) saw new options become available this week, for the November ...

Notable Tuesday Option Activity: IBM, GRMN, ELF
Tuesday, September 26, 3:23 PM ET, by Market News Video Staff

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume ...

Hormel Foods Becomes #24 Most Shorted S&P 500 Component, Replacing Helmerich & Payne
Wednesday, September 27, 2:10 PM ET, by Market News Video Staff

The most recent short interest data has been released for the 09/15/2017 settlement date, and ...

Snap-On Becomes #5 Most Shorted S&P 500 Component, Replacing Garmin
Wednesday, September 27, 2:13 PM ET, by Market News Video Staff

The most recent short interest data has been released for the 09/15/2017 settlement date, and ...

Garmin Takes Over #413 Spot From Juniper Networks
Monday, October 9, 4:37 PM ET, by Market News Video Staff

In the latest look at the underlying components of the S&P 500 ordered by largest ...

  More articles:  1 2 next »

The New #2 Most Shorted S&P 500 Component: Garmin

By Market News Video Staff, Thursday, July 13, 2:12 PM ET
Play Video: What Short Interest Means

If the video does not load after a few moments, Upgrade to the Latest Flash Player.

The most recent short interest data has been released for the 06/30/2017 settlement date, and we here at Dividend Channel like to sift through this fresh data and order the underlying components of the S&P 500 by "days to cover." There are a number of ways to look at short data, for example the total number of shares short; but one metric that we find particularly useful is the "days to cover" metric because it considers both the total shares short and the average daily volume of shares typically traded. The number of shares short is then compared to the average daily volume, in order to calculate the total number of trading days it would take to close out all of the open short positions if every share traded represented a short position being closed.

In our new rank based on the most recent short interest data, Garmin Ltd (NASDAQ:GRMN) has taken over the position of #2 most shorted S&P 500 component, from Hormel Foods Corp. (NYSE:HRL) which is now in the #14 spot. The "days to cover" at 06/30/2017 was 19.25 for GRMN, and 10.99 for HRL; this compares to the average across all S&P 500 components of 3.90 (down from the average back on the 06/15/2017 settlement date of 4.28). The chart below shows the movement over time of the "days to cover" values of both GRMN and HRL, versus the average S&P 500 component.

Below is a chart showing the relative positions of GRMN versus HRL over time within the 500 S&P 500 components, with #1 representing the component with the highest "days to cover" value (most heavily shorted) and #500 representing the component with the lowest "days to cover" value (least heavily shorted):

A stock with a high "days to cover" value compared to its peers would be considered to have a higher level of short interest as compared to those peers. This could mean short sellers are using the stock to hedge a long bet elsewhere, or could also mean that short sellers believe the price of the stock will decline. When short sellers eventually cover their positions, by definition there must be buying activity because a share that is currently sold short must be purchased to be covered. So investors tend to keep an eye on that "days to cover" metric, because a high value could predict a sharper price increase should the company put out some unexpectedly good news short sellers might rush to cover positions, and if the "days to cover" number is high, it is more difficult to close those positions without sending the stock higher until the higher price produces enough sellers to generate the necessary volume.

Below is a three month price history chart comparing the stock performance of GRMN vs. HRL:

GRMN,HRL Relative Performance Chart

According to the ETF Finder at ETF Channel, GRMN and HRL collectively make up 1.05% of the First Trust Large Cap Value AlphaDEX Fund ETF (FTA) which is higher by about 0.3% on the day Thursday.

See what other ETFs contain both GRMN and HRL
See what other stocks are held by FTA

Top Six Most Viewed Stories This Week @ Market News Video:

This Article's Word Cloud:   GRMN   afterLeftLabels   average   background   because   both   chart   chartBackgroundColor   clientId   compared   component   components   could   cover   data   date   days   fillBelowLine   fillColor   fontFace   gridLocation   high   higher   interest   labelColor   leftBuffer   leftLabelsEvery   metric   most   movingAverages   number   over   period   positions   price   representing   sellers   settlement   shares   short   shorted   stock   that   time   total   value   volume   what   which   with
About Us - Advertise - Contact Us - Embedding Videos - Licensing Videos - Partners - mRSS / RSS Feed - Terms of Use - Privacy Policy - Video Widget
Home  |  Analyst News  Dividend Report  ETFs  Insider Report  Large Caps  Market Movers  Week Ahead Report  Weekly Market Wrap
MNV MNV Chart Zero Stock Market Game Stock Market Definitions

The New #2 Most Shorted S&P 500 Component: Garmin | Market News Video | Copyright © 2008 - 2017, All Rights Reserved

Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.