Short Interest and Short Interest Ratio
What does short interest represent?
Short Interest – is the actual number of shares shorted compared to the total float. Expressed as a ratio.
What is considered a HIGH short interest?
Anything above a 10% is a HIGH short interest.
What is the short interest number of days to cover?
The average number of days it takes for short sellers to repurchase borrowed securities in the open market. The ratio is calculated by dividing the total number of shorted shares of a stock by the average daily trading volume.
E.g. – (Dec 2023, SOFI)
- Short Interest ratio is 14.6 % – very high
- Days to cover – 3.5 – in other words, it will take almost 4 days for short stock holders to buy back their shares on the open market. The higher this is, the more the potential for a short squeeze.
| shares – source: NASDAQ | |
|---|---|
| Short Interest Ratio | 3.58 Days to Cover |
| Short Interest % Float | 14.64 % – source: NASDAQ (short interest), Capital IQ (float) |
Anuj holds professional certifications in Google Cloud, AWS as well as certifications in Docker and App Performance Tools such as New Relic. He specializes in Cloud Security, Data Encryption and Container Technologies.
Anuj Varma – who has written 1214 posts on Anuj Varma, Hands-On Technology Architect, Clean Air Activist.
Leave a Reply