Delta Air Lines’ Short Interest Rises: What Does It Mean for Investors?
Delta Air Lines (NYSE: DAL) recently reported a 25.0% increase in its short percent of float, with 18.25 million shares sold short, accounting for 3.2% of all regular shares available for trading. This means that traders would take an average of 1.39 days to cover their short positions.
Short interest is the number of shares sold short but not yet covered or closed out. Short selling involves selling shares of a company one does not own, with the hope that the price will fall. Investors can profit from short selling if the stock price decreases, but will incur losses if it rises.
Monitoring short interest is crucial as it can indicate market sentiment towards a specific stock. An increase in short interest may suggest bearish sentiment, while a decrease could indicate bullish sentiment.
In the case of Delta Air Lines, the short interest has grown since the last report, signaling that more shares are being shorted. However, this does not necessarily mean the stock will decline in the near-term.
When comparing Delta Air Lines’ short interest against its peers, data from Benzinga Pro reveals that the company has less short interest than the average of its peer group, which stands at 9.16% of float. This could suggest that Delta Air Lines is performing relatively well compared to its industry counterparts in terms of short interest.
It is worth noting that increasing short interest can sometimes be bullish for a stock. Investors interested in learning how to profit from short squeezes can refer to resources like Benzinga Money for more information on this strategy.
In conclusion, the rise in Delta Air Lines’ short interest indicates a shift in market sentiment towards the stock. Investors should carefully monitor this data and consider its implications when making investment decisions.
