Moody's Becomes #57 Most Shorted S&P 500 Component, Replacing O'Reilly Automotive

The most recent short interest data has been released by the NASDAQ for the 03/31/2014 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:
Top 25 S.A.F.E. Dividend Stocks »

In our new rank based on the most recent short interest data from NASDAQ, Moody's Corp. ( MCO) has taken over the position of #57 most shorted S&P 500 component, from O'Reilly Automotive, Inc. ( ORLY) which is now in the #73 spot. The "days to cover" at 03/31/2014 was 7.17 for MCO, and 6.38 for ORLY; this compares to the average across all S&P 500 components of 3.92 (down from the average back on the 03/14/2014 settlement date of 4.09). The chart below shows the movement over time of the "days to cover" values of both MCO and ORLY, versus the average S&P 500 component.

Loading+chart++2014+TickerTech.com

Below is a chart showing the relative positions of MCO versus ORLY 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

Your Complete Guide to Living Like Billionaire Warren Buffett

How to Get Rich Using Warren Buffett's Favorite Stock Market Indicators

How to Make Your Life Successful Just Like Billionaire Warren Buffett

How to Live Just Like Billionaire Warren Buffett

How to Make a Deal Like Billionaire Investor Warren Buffett