Short Interest In PetSmart Expands By 14.5%

Dec 26 2013, 10:38am CST | by

The most recent short interest data has been released by the NASDAQ for the 12/13/2013 settlement date, which shows a 1,197,408 share increase in total short interest for PetSmart, Inc. (NASD: PETM), to 9,435,676, an increase of 14.53% since 11/29/2013. Total short interest is just one way to look at short data; another metric that we here at Dividend Channel find particularly useful is the “days to cover” metric because it considers both the total shares short and the average daily volume of shares traded. The number of shares short is then compared to the average daily volume, in order to calculate the total number of trading days (at the average volume) it would take to close out all of the open short positions if every share traded represented a short position being closed. Average daily volume for PETM at the 12/13/2013 settlement decreased to 1,125,348, as compared to 1,544,591 at the 11/29/2013 report. That brought “days to cover” up to 8.38, a 57.20% increase from the 5.33 days to cover calculated at the previous short interest data release.

Start slideshow:
Top 25 S.A.F.E. Dividend Stocks »/>

The below chart shows the historical “days to cover” for PETM at previous short interest release dates:

An increased “days to cover” value could indicate that short sellers are using the stock to hedge a long bet elsewhere, or could also mean that short sellers believe the stock will decline in price. 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 then rush to cover their positions, and if the “days to cover” number is high, it would then be more difficult to close those positions without sending the stock higher (until the higher price produces enough sellers to generate the necessary volume the short sellers need to close their positions).

The chart below shows the one year performance of PETM shares, versus its 200 day moving average. Looking at this chart, PETM’s low point in its 52 week range is $61.30 per share, with $77.32 as the 52 week high point — that compares with a last trade of $73.61.

According to the ETF Finder at ETFChannel.com, PETM makes up 1.07% of the SPDR S&P Retail ETF (XRT) which is higher by about 0.6% on the day Thursday.

See what other ETFs contain one »
In afternoon trading Thursday, PETM was up about 0.4% on the day./>

Source: Forbes Business

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Chimpanzees plan their breakfast time
London, Oct 29 (IANS) Wild chimpanzees flexibly plan when and where they will have breakfast after weighing multiple factors, such as the time of day and the type of food to be eaten, research shows.
 
 
Virus scare grounds flight in New Zealand
Wellington, Oct 29 (IANS) An Air New Zealand flight was grounded Wednesday after it emerged that a group of passengers had been exposed to the Norovirus, which could cause vomiting, diarrhoea, and abdominal pain, a media report said.
 
 
India leads South Asia in 'doing business' easier: World Bank
Washington, Oct 29 (IANS) A new World Bank Group report finds that India set the pace for regulatory reform in South Asia in 2013/14 India with 20 - the region's largest reforms during the period.
 
 
China's yuan strengthens
Beijing, Oct 29 (IANS) The value of the Chinese currency renminbi, or the yuan, strengthened by 16 basis points to 6.1405 against the US dollar in its central parity Wednesday, authorities said.
 
 
 

Latest from the Network

US unmanned spacecraft explodes shortly after launch
Washington, Oct 29 (IANS) An unmanned spaceship operated by a private US firm exploded just minutes after its launch Tuesday, media reported. The rocket blew up over the launch complex at Wallops Island, Virginia,...
Read more on Politics Balla
 
A$AP Rocky and Chanel Iman split
A$AP Rocky and Chanel Iman have reportedly ended their engagement. The 26-year-old rapper, who secretly proposed to the Victoria's Secret model in April after less than a year of dating, recently split from the 23-year-...
Read more on Celebrity Balla
 
Australian troops conduct G20 security training
Sydney, Oct 29 (IANS) Australian special forces troops have conducted G20 training exercises involving a mock hostage recovery operation in Brisbane Tuesday. Australian Defence Force spokesman for the G20, Maj. Gen....
Read more on Politics Balla
 
Nick Jonas angry over band split?
Los Angeles, Oct 29 (IANS) Pop star Nick Jonas is reportedly angry with his siblings over the breakup of their band - The Jonas Brothers. The trio disbanded in October last year after pulling out of a North American...
Read more on Celebrity Balla
 
Chinese peacekeepers to help build Ebola quarantine center
United Nation, Oct. Oct 29 (IANS) The Chinese contingent of the UN Mission in Liberia (UNMIL) will help build an Ebola Quarantine and Control Center in the capital city of Monrovia, a UN spokesperson said here Tuesday...
Read more on Business Balla
 
IS captures three gas wells in Syria
Damascus, Oct 29 (IANS) The Islamic State(IS) militants Tuesday captured three gas wells in Syria's central province of Homs, media reported. The IS captured the gas wells east of Palmyra in Homs after intense clashes...
Read more on Politics Balla
 
Jennifer Lawrence and Chris Martin's split wasn't dramatic
Jennifer Lawrence's split from Chris Martin reportedly ''wasn't dramatic.'' The 'Hunger Games' actress quietly decided to end her relationship with the Coldplay frontman a few weeks ago after four months of dating...
Read more on Celebrity Balla
 
Eddie Redmayne just wants to pay his mortgage
Eddie Redmayne says he is just trying to pay his mortgage. The 'Les Miserables' actor, who is set to marry antiques dealer Hannah Bagshawe in December, claims he doesn't consider himself ''a movie star'' and doesn't...
Read more on Celebrity Balla
 
Jane Lynch finalizes divorce
Jane Lynch's ex-wife Dr. Lara Embry received millions in their divorce. The 'Glee' star, whose split from clinical psychologist was finalized on Monday (10.27.14), following their separation in February 2012, reportedly...
Read more on Celebrity Balla
 
David McIntosh keen to marry Kelly Brook
London, Oct 29 (IANS) Following their recent reconciliation, actor David McIntosh says he wants to marry his on-off girlfriend Kelly Brook. The 28-year-old star is eager to wed the model in Mykonos, Greece, reports...
Read more on Celebrity Balla