Short Interest Moves 14.2% Lower For IRDM

The most recent short interest data has been released by the NASDAQ for the 12/31/2013 settlement date, which shows a 1,730,498 share decrease in total short interest for Iridium Communications Inc (IRDM), to 10,451,431, a decrease of 14.21% since 12/13/2013. 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 IRDM at the 12/31/2013 settlement increased to 1,142,483, as compared to 993,115 at the 12/13/2013 report. That brought "days to cover" down to 9.15, a 25.42% decrease from the 12.27 days to cover calculated at the previous short interest data release.

START SLIDESHOW:
Top 25 S.A.F.E. Dividend Stocks »

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

Loading+chart++2014+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 IRDM had been shorted as a hedge.

The chart below shows the one year performance of IRDM shares, versus its 200 day moving average. Looking at this chart, IRDM's low point in its 52 week range is $5.37 per share, with $9.22 as the 52 week high point — that compares with a last trade of $6.24.

Iridium Communications Inc Chart

According to the ETF Finder at ETF Channel, IRDM makes up 1.09% of the Vanguard Telecommunication Services ETF (VOX) which is lower by about 0.7% on the day Monday.

In afternoon trading Monday, IRDM was off about 2% on the day.

More from Stocks

Quick Read: 3 Things for Investors to Know Before Wednesday's Trading Session

Quick Read: 3 Things for Investors to Know Before Wednesday's Trading Session

Replay: Jim Cramer on the Markets, Oil, General Electric, Zillow and Micron

Replay: Jim Cramer on the Markets, Oil, General Electric, Zillow and Micron

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Micron Shares Soar; Chipmaker Is 'Managing for Profitability' Now, Says Analyst

Micron Shares Soar; Chipmaker Is 'Managing for Profitability' Now, Says Analyst

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline