Short sellers dipped bets against the S&P 500 industrial sector stocks in October, with the S&P 500 Industrial ETF (XLI) marginally higher last month.
As of October’s end, the average short interest rate in S&P 500 industrials dipped to 2.31%, down 1 bps from 2.32% at the end of September.
The S&P 500’s industrial sector (NYSEARCA:XLI) was up 0.54% in October, compared to the broader S&P 500, which was up 2.38%.
Short interest, which could be an indicator of pessimism, calculates the number of shares sold against the company float. (Short Interest % = Number of Shares Sold Short ÷ Stock Float).
Most shorted stocks:
Southwest Airlines (LUV) – 6.56% vs 6.53% last month.
C.H. Robinson Worldwide (CHRW) – 6.33% vs 7.00%.
Generac Holdings (GNRC) – 6.08% vs 4.42%.
Old Dominion Freight Line (ODFL) – 6.02% vs 6.02%.
Paycom Software (PAYC) – 5.66% vs 4.95%.
Least shorted stocks:
Northrop Grumman (NOC) – 0.84% vs 1.03% last month.
General Dynamics (GD) – 0.85% vs 1.01% last month.
RTX (RTX) – 0.93% vs 1.01%.
AMETEK (AME) – 0.97% vs 1.09%.
Waste Management (WM) – 1.06% vs 1.09%.
Source: Seekingalpha.com
Within the industry, passenger airlines (SP500-20302010) remained the most shorted industry within the industrial sector, with 4.29% short interest at the end of October, compared to 4.31% last month. Software was the second most shorted industry with a short interest of 3.29% compared to 3.03% at the end of September. Environmental and Facilities Services (SP500-20201050) is the least shorted sector with short interest of 1.43% at the end of October.