The New #242 Most Shorted S&P 500 Component: Mead Johnson Nutrition

The most recent short interest data has been released by the NASDAQ for the 06/14/2013 settlement date, and we here at Dividend Channel like to sift through this fresh data and order the underlying components of the S&P 500 by "days to cover." There are a number of ways to look at short data, for example the total number of shares short; but one metric that we find particularly useful is the "days to cover" metric because it considers both the total shares short and the average daily volume of shares typically traded. The number of shares short is then compared to the average daily volume, in order to calculate the total number of trading days it would take to close out all of the open short positions if every share traded represented a short position being closed.

START SLIDESHOW:
The 25 Most Shorted S&P 500 Stocks »

In our new rank based on the most recent short interest data from NASDAQ, Mead Johnson Nutrition Co ( MJN) has taken over the position of #242 most shorted S&P 500 component, from PNC Financial Services Group ( PNC) which is now in the #255 spot. The "days to cover" at 06/14/2013 was 3.05 for MJN, and 2.94 for PNC; this compares to the average across all S&P 500 components of 3.94 (up from the average back on the 05/31/2013 settlement date of 3.72). The chart below shows the movement over time of the "days to cover" values of both MJN and PNC, versus the average S&P 500 component.

Loading+chart++2013+TickerTech.com

Below is a chart showing the relative positions of MJN versus PNC over time within the 500 S&P 500 components, with #1 representing the component with the highest "days to cover" value (most heavily shorted) and #500 representing the component with the lowest "days to cover" value (least heavily shorted):

If you liked this article you might like

McCormick in $4.2 Billion Play for Reckitt Benckiser's Food Division

Reckitt Wrecked By Petya Virus

Reckitt Benckiser Says Petya Cyber Attack Will Slam Q2 Revenues

Reckitt to Close $18 Billion Mead Johnson Takeover Deal June 15