Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

When considering stocks, it's always helpful to gauge what the rest of the market thinks. One source for that is the number of shares shorted. Companies seeing significant increases in shares shorted are being viewed more negatively, and vice-versa.

We ran a screen on the tech sector for stocks seeing the most significant decreases in shares shorted month-over-month. This indicates that short sellers are less bearish on these names than they were before.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks will outperform too? Use this list as a starting point for your own analysis.

1. Diamond Offshore Drilling Inc. (DO): Operates as an offshore oil and gas drilling contractor worldwide. Market cap at $9.98B, most recent closing price at $71.80. Shares shorted have decreased from 9.17M to 8.21M over the last month, a decrease which represents about 1.39% of the company's float of 68.90M shares. Days to cover ratio at 7.67 days.

2. Magnum Hunter Resources Corp. (MHR): Engages in the acquisition, development and production of oil and natural gas primarily in West Virginia, North Dakota, Texas and Louisiana. Market cap at $691.38M, most recent closing price at $4.10. Shares shorted have decreased from 32.83M to 31.25M over the last month, a decrease which represents about 1.% of the company's float of 157.69M shares. Days to cover ratio at 10.12 days.

3. Nabors Industries Ltd. (NBR): Operates as a land drilling contractor worldwide. Market cap at $4.26B, most recent closing price at $14.68. Shares shorted have decreased from 11.57M to 8.64M over the last month, a decrease which represents about 1.17% of the company's float of 251.14M shares. Days to cover ratio at 2.67 days.

4. Northern Oil and Gas, Inc. (NOG): Engages in the acquisition, exploration, development and production of crude oil and natural gas properties in the Williston basin, the United States. Market cap at $1.1B, most recent closing price at $17.25. Shares shorted have decreased from 11.31M to 10.35M over the last month, a decrease which represents about 1.66% of the company's float of 57.91M shares. Days to cover ratio at 15.6 days.

5. Vantage Drilling Company (VTG): Provides offshore contract drilling services to large multinational oil and natural gas companies, government owned oil and natural gas companies, and independent oil and natural gas producers in the United States and internationally. Market cap at $532.38M, most recent closing price at $1.81. Shares shorted have decreased from 13.07M to 10.48M over the last month, a decrease which represents about 1.47% of the company's float of 176.08M shares. Days to cover ratio at 12.5 days.

6. W&T Offshore Inc. (WTI): Engages in the acquisition, exploitation, exploration and development of oil and natural gas properties primarily in the Gulf of Mexico. Market cap at $1.25B, most recent closing price at $16.78. Shares shorted have decreased from 4.46M to 4.12M over the last month, a decrease which represents about 1.01% of the company's float of 33.73M shares. Days to cover ratio at 8.83 days.

7. C&J Energy Services, Inc. (CJES): Through its wholly-owned subsidiary, C&J Spec-Rent Services, Inc., provides specialty equipment services for oil and natural gas exploration and production companies in the Texas, Louisiana, and Oklahoma regions of the United States. Market cap at $1.17B, most recent closing price at $22.17. Shares shorted have decreased from 6.01M to 5.41M over the last month, a decrease which represents about 1.68% of the company's float of 35.76M shares. Days to cover ratio at 11.26 days.

8. Dril-Quip, Inc. (DRQ): Designs, manufactures, fabricates, inspects, assembles, tests and markets engineered offshore drilling and production equipment for use in deepwater, harsh environment and severe service applications worldwide. Market cap at $3.16B, most recent closing price at $78.18. Shares shorted have decreased from 1.62M to 1.18M over the last month, a decrease which represents about 1.2% of the company's float of 36.64M shares. Days to cover ratio at 7.27 days.

9. Alon USA Energy, Inc. (ALJ): Operates as an independent refiner and marketer of petroleum products in south central, southwestern and western regions of the United States. Market cap at $1.11B, most recent closing price at $18.14. Shares shorted have decreased from 859.24K to 657.40K over the last month, a decrease which represents about 1.06% of the company's float of 18.99M shares. Days to cover ratio at 2.2 days.

Short data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: Short Sellers Think These 9 Oil And Gas Stocks Have Upside