Market News Video
MNV MNV 10 Bargains You Can Buy Cheaper Than Insiders Did
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

Macy's Named Top Dividend Stock With Insider Buying and 6.69% Yield (M)
Monday, September 18, 1:56 PM ET, by Market News Video Staff

In this series, we look through the most recent Dividend Channel ''DividendRank'' report, and then ...

Noteworthy Tuesday Option Activity: M, GOV, MOH
Tuesday, September 19, 3:25 PM ET, by Market News Video Staff

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy ...

Notable Monday Option Activity: M, PEP, INTC
Monday, October 2, 1:29 PM ET, by Market News Video Staff

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume ...

Monday Sector Laggards: Services, Energy
Monday, October 2, 2:31 PM ET, by Market News Video Staff

The worst performing sector as of midday Monday is the Services sector, showing a 0.2% ...

Macy's Becomes #131 Most Shorted S&P 500 Component, Replacing Illinois Tool Works
Wednesday, October 11, 2:45 PM ET, by Market News Video Staff

The most recent short interest data has been released for the 09/29/2017 settlement date, and ...

  More articles:  1 2 next »

M: Insiders vs. Shorts

By Market News Video Staff, Tuesday, November 14, 1:29 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 was recently released for the 10/31/2017 settlement date, and Macy's Inc (NYSE:M) is the #154 most shorted of the S&P 500 components, based on 4.41 "days to cover." There are a number of ways to look at short data, but one metric that we find particularly useful is the "days to cover" because it considers both the total shares short and the average daily volume of shares typically traded. The number of shares short is then divided by the average daily volume, to express 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 the case of Macy's Inc (NYSE:M), the total short interest at the 10/31/2017 settlement date was 57,005,876 shares, which compares to the average daily trading volume of just 12,916,532 shares, for a "days to cover" ratio of 4.41.

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. At the present levels of short interest, if from this point forward every single M share traded represented a short position being closed, then at the average daily volume of 12,916,532 shares it would only be during the 5th trading day that every short position would be closed.

So it would stand to reason that should some unexpectedly good news come out, and short sellers did not have 5 days of patience but instead wanted to cover their short positions very suddenly, that situation could result in sending the stock higher until the higher price produces enough sellers to generate the necessary volume to close out those positions quickly.

Macy's Inc (NYSE:M) has something relatively rare for a stock with this much short interest, that being insiders taking the other side of the trade. Looking back over the trailing six month period, M has seen 4 different instances of insider buying, as summarized by the table below:

Purchased Insider Title Shares Price/Share Value
06/12/2017 Jeffrey Gennette President and CEO 13,085 $22.95 $300,299.44
06/15/2017 William H. Lenehan Director 4,390 $22.72 $99,721.04
08/23/2017 Marna C. Whittington Director 10,000 $20.55 $205,451.00
08/23/2017 John A. Bryant Director 9,825 $20.32 $199,599.79

Below is a chart showing the "days to cover" for M over time:

And looking at the chart below, M's low point in its 52 week range is $17.41 per share, with $45.41 as the 52 week high point that compares with a last trade of $19.47.

Macy's Inc Moving Averages Chart

In recent trading, shares of Macy's Inc (NYSE:M) were changing hands at $19.47/share.

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

This Article's Word Cloud:   Director   Macy   NYSE   average   because   being   below   buying   chart   close   closed   compares   cover   daily   data   date   days   every   fillColor   higher   interest   most   must   number   over   period   point   position   positions   recent   represented   sellers   settlement   share   shares   short   stock   that   their   then   this   total   trade   traded   trading   unexpectedly   volume   week   with   would
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 Stock Message Boards Stock Market Definitions

M: Insiders vs. Shorts | 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.