S&P 1500's Most Heavily Shorted Stocks

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Includes: ADPT, GLF, RIG, TDW, X
by: Bespoke Investment Group

Short interest figures from the NYSE and Nasdaq were released last week, and we have just sent our regular update of the figures to Bespoke Premium and Bespoke Institutional clients (click here to see it with a 14-day no-obligation free trial). Our S&P 1500 Short Interest Report is a detailed look at key trends in short interest levels for the overall market, different market cap ranges, sectors, industry groups, and individual stocks (sample here). The table below is from our most recent update, and it shows every stock in the S&P 1500 that has more than 25% of its free-floating shares sold short through the end of May. In this update, there were 40 stocks in the S&P 1500 fitting the criteria. In terms of sector representation, more than half of the stocks listed are from the Consumer Discretionary (14) and Energy (9) sectors, and the only two sectors that aren't represented are Utilities and Telecom Services.

For each stock listed below, we have also included its performance so far in June. With an average gain of 0.73% (median: +0.80%), the most heavily shorted stocks are slightly outperforming the S&P 1500's decline of 0.07%. In terms of breadth, 25 of the stocks listed have seen gains so far this month, while 15 are down. This is somewhat of a reversal of the trend that we saw back in May where the most heavily shorted stocks underperformed the S&P 1500 by a wide margin. While the most heavily shorted stocks are slightly outperforming, the most heavily shorted stock in the index is making a mint for investors. With 54% of its float sold short, shares of Adeptus Health (NYSE:ADPT) are down nearly 29% just this month. Besides ADPT, just two other stocks (Wisdom Tree and Encore Capital) on the list are down more than 10% in June. While the shorts are making a mint on these three stocks, they are getting hit hard on names like US Steel (NYSE:X), Tidewater (NYSE:TDW), GulfMark (NYSEMKT:GLF), and Transocean (NYSE:RIG), which are all up by more than 10% already in June.