Bank of America Short Interest Plunges
NEW YORK (
) --
Bank of America
(BAC) - Get Report
short interest fell nearly 23% at the end of October, the latest sign bearish sentiment on the Charlotte, N.C.-based may be easing.
Outstanding short interest fell to about 99 million shares in the second half of October, from just over 128 million shares in the first half of the month. The move occurred even as short sellers increased pressure on several other big bank stocks.
Short interest jumped some 20% on
Wells Fargo
(WFC) - Get Report
to over 52 million shares, while also rising slightly on
Citigroup
(C) - Get Report
,
Synovus Financial Corp.
(SNV) - Get Report
,
Regions Financial Corp
(RF) - Get Report
,
KeyCorp
(KEY) - Get Report
and
First Bancorp
(FBP) - Get Report
.
JPMorgan Chase
(JPM) - Get Report
, however, saw a slight drop in short interest to about 39 million shares from just under 40 million in the previous period.
Short sellers borrow shares in the hope the stock will fall. They can then buy it back at a lower price and pocket the difference. The New York Stock Exchange releases data on its 100 most-shorted listings twice a month with a roughly two week lag time.
Bank of America was initially the
hardest hit among large bank stocks by concerns it could face untold billions in liability for sloppy mortgage underwriting and foreclosure practices. However, a recent legal decision in the bank's favor and bullish reports from analysts urging investors to buy the beaten down stock have ignited a rebound in recent days.
Bank of America was set to open higher in pre-market trading Wednesday as Chairman Chad Holliday and Robert Scully, a member of the Board of Directors, together bought nearly $1 million worth of stock, according to public filings released Wednesday.
--
Written by Dan Freed in New York
.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
