Short Interest Drops 28% For IPXL

The most recent short interest data has been released by the NASDAQ for the 11/15/2013 settlement date, which shows a 608,131 share decrease in total short interest for Impax Laboratories Inc (IPXL), to 1,569,391, a decrease of 27.93% since 10/31/2013. Total short interest is just one way to look at short data; another metric that we here at Dividend Channel find particularly useful is the "days to cover" metric because it considers both the total shares short and the average daily volume of shares traded. The number of shares short is then compared to the average daily volume, in order to calculate the total number of trading days (at the average volume) it would take to close out all of the open short positions if every share traded represented a short position being closed. Average daily volume for IPXL at the 11/15/2013 settlement increased to 592,951, as compared to 392,216 at the 10/31/2013 report. That brought "days to cover" down to 2.65, a 52.33% decrease from the 5.55 days to cover calculated at the previous short interest data release.

START SLIDESHOW:
The 10 Most Shorted Stocks of the Dow »

The below chart shows the historical "days to cover" for IPXL at previous short interest release dates:

Loading+chart++2013+TickerTech.com

A decreased "days to cover" value could indicate that short sellers are no longer expecting the same decline in stock price they once were, or it could also indicate a long bet elsewhere was closed where IPXL had been shorted as a hedge.

The chart below shows the one year performance of IPXL shares, versus its 200 day moving average. Looking at this chart, IPXL's low point in its 52 week range is $14.41 per share, with $23.88 as the 52 week high point — that compares with a last trade of $23.82.

Impax Laboratories Inc Chart

According to the ETF Finder at ETF Channel, IPXL makes up 3.13% of the SPDR S&P Pharmaceuticals ETF (XPH) which is higher by about 0.3% on the day Wednesday.

In afternoon trading Wednesday, IPXL was up about 1.4% on the day.

null

More from Stocks

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Tesla's Supercharger Network Is Booming -- Here's Why That's a Concern

Tesla's Supercharger Network Is Booming -- Here's Why That's a Concern

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly

Tesla CEO Elon Musk Is a Rock Star: Kiss Icon Gene Simmons

Tesla CEO Elon Musk Is a Rock Star: Kiss Icon Gene Simmons

The Best Investment Advice? Stay Diversified

The Best Investment Advice? Stay Diversified