OPK: Insiders vs. Shorts

The most recent short interest data was recently released by the NASDAQ for the 06/13/2014 settlement date, and Opko Health Inc (OPK) is one of the most shorted stocks of the Russell 3000, based on 25.46 "days to cover" versus the median component at 6.51. There are a number of ways to look at short data, but one metric that we find particularly useful is the "days to cover" because it considers both the total shares short and the average daily volume of shares typically traded. The number of shares short is then divided by the average daily volume, to express 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.

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In the case of Opko Health Inc ( OPK), the total short interest at the 06/13/2014 settlement date was 51,904,149 shares, which compares to the average daily trading volume of just 2,038,550 shares, for a "days to cover" ratio of 25.46.

When short sellers eventually cover their positions, by definition there must be buying activity because a share that is currently sold short must be purchased to be covered. At the present levels of short interest, if from this point forward every single OPK share traded represented a short position being closed, then at the average daily volume of 2,038,550 shares it would only be during the 26th trading day that every short position would be closed.

So it would stand to reason that should some unexpectedly good news come out, and short sellers did not have 26 days of patience but instead wanted to cover their short positions very suddenly, that situation could result in sending the stock higher until the higher price produces enough sellers to generate the necessary volume to close out those positions quickly.

Opko Health Inc ( OPK) has something relatively rare for a stock with this much short interest, that being insiders taking the other side of the trade. Looking back over the trailing six month period, OPK has seen 2 different instances of insider buying, as summarized by the table below:

Purchased Insider Title Shares Price/Share Value
01/07/2014 John A. Paganelli Director 10,000 $8.45 $84,472.00
01/07/2014 Phillip Frost, M.D et. al. CEO & Chairman 14,000 $8.47 $118,522.98
01/08/2014 Phillip Frost, M.D et. al. CEO & Chairman 7,400 $8.49 $62,823.82
01/09/2014 Phillip Frost, M.D et. al. CEO & Chairman 9,500 $8.46 $80,408.22
01/10/2014 Phillip Frost, M.D et. al. CEO & Chairman 8,200 $8.59 $70,423.02
01/17/2014 Phillip Frost, M.D et. al. CEO & Chairman 31,700 $8.72 $276,303.29
01/21/2014 Phillip Frost, M.D et. al. CEO & Chairman 16,700 $8.82 $147,272.88
01/22/2014 Phillip Frost, M.D et. al. CEO & Chairman 17,300 $8.92 $154,297.80
01/23/2014 Phillip Frost, M.D et. al. CEO & Chairman 14,900 $8.82 $131,447.93
01/24/2014 Phillip Frost, M.D et. al. CEO & Chairman 37,000 $8.51 $314,812.18
01/27/2014 Phillip Frost, M.D et. al. CEO & Chairman 177,722 $8.22 $1,460,316.26
01/27/2014 Phillip Frost, M.D et. al. CEO & Chairman 147,156 $8.09 $1,190,784.87
01/27/2014 Phillip Frost, M.D et. al. CEO & Chairman 259,622 $7.93 $2,058,731.16
01/28/2014 Phillip Frost, M.D et. al. CEO & Chairman 7,500 $8.16 $61,200.00
01/29/2014 Phillip Frost, M.D et. al. CEO & Chairman 42,100 $8.01 $337,082.67
01/28/2014 Jane PH D. Hsiao Vice Chairman & CTO 10,000 $8.20 $81,997.50
01/30/2014 Jane PH D. Hsiao Vice Chairman & CTO 10,000 $8.14 $81,380.00
01/31/2014 Phillip Frost, M.D et. al. CEO & Chairman 15,000 $7.92 $118,773.43
02/03/2014 Phillip Frost, M.D et. al. CEO & Chairman 28,400 $7.74 $219,707.19
02/04/2014 Phillip Frost, M.D et. al. CEO & Chairman 43,400 $7.62 $330,644.68
02/05/2014 Phillip Frost, M.D et. al. CEO & Chairman 349,740 $7.59 $2,655,932.15
02/05/2014 Phillip Frost, M.D et. al. CEO & Chairman 150,260 $7.45 $1,119,692.31
02/12/2014 Phillip Frost, M.D et. al. CEO & Chairman 21,800 $7.76 $169,146.79
02/14/2014 Phillip Frost, M.D et. al. CEO & Chairman 20,500 $8.65 $177,375.28
02/18/2014 Phillip Frost, M.D et. al. CEO & Chairman 20,900 $8.68 $181,489.35
02/19/2014 Phillip Frost, M.D et. al. CEO & Chairman 27,600 $8.53 $235,498.41
02/20/2014 Phillip Frost, M.D et. al. CEO & Chairman 27,000 $8.56 $231,083.00
02/21/2014 Phillip Frost, M.D et. al. CEO & Chairman 17,200 $9.00 $154,870.62
02/24/2014 Phillip Frost, M.D et. al. CEO & Chairman 15,000 $8.96 $134,409.50
02/25/2014 Phillip Frost, M.D et. al. CEO & Chairman 15,000 $9.03 $135,476.00
02/26/2014 Phillip Frost, M.D et. al. CEO & Chairman 15,000 $8.98 $134,644.45
02/27/2014 Phillip Frost, M.D et. al. CEO & Chairman 15,000 $9.11 $136,711.94
02/28/2014 Phillip Frost, M.D et. al. CEO & Chairman 15,000 $9.73 $145,976.42
03/05/2014 Phillip Frost, M.D et. al. CEO & Chairman 15,000 $9.39 $140,786.50
03/06/2014 Phillip Frost, M.D et. al. CEO & Chairman 41,500 $9.15 $379,532.17
03/07/2014 Phillip Frost, M.D et. al. CEO & Chairman 10,000 $9.20 $92,000.00
03/10/2014 Phillip Frost, M.D et. al. CEO & Chairman 9,600 $9.21 $88,428.67
03/11/2014 Phillip Frost, M.D et. al. CEO & Chairman 60,900 $9.12 $555,581.61
03/12/2014 Phillip Frost, M.D et. al. CEO & Chairman 6,000 $9.25 $55,503.50
03/13/2014 Phillip Frost, M.D et. al. CEO & Chairman 37,000 $9.32 $344,778.74
03/18/2014 Phillip Frost, M.D et. al. CEO & Chairman 20,500 $9.95 $203,978.40
03/19/2014 Phillip Frost, M.D et. al. CEO & Chairman 15,000 $9.73 $146,000.62
03/20/2014 Phillip Frost, M.D et. al. CEO & Chairman 34,600 $9.74 $336,984.05
03/21/2014 Phillip Frost, M.D et. al. CEO & Chairman 30,800 $9.46 $291,268.98
03/24/2014 Phillip Frost, M.D et. al. CEO & Chairman 21,400 $9.28 $198,675.75
03/25/2014 Phillip Frost, M.D et. al. CEO & Chairman 16,500 $9.27 $152,988.45
03/26/2014 Phillip Frost, M.D et. al. CEO & Chairman 52,400 $9.12 $477,649.69
03/27/2014 Phillip Frost, M.D et. al. CEO & Chairman 26,800 $9.01 $241,555.54
03/28/2014 Phillip Frost, M.D et. al. CEO & Chairman 37,700 $8.88 $334,826.90
04/02/2014 Phillip Frost, M.D et. al. CEO & Chairman 18,200 $9.59 $174,577.39
04/03/2014 Phillip Frost, M.D et. al. CEO & Chairman 28,000 $9.45 $264,719.78
04/04/2014 Phillip Frost, M.D et. al. CEO & Chairman 26,900 $9.20 $247,546.55
04/07/2014 Phillip Frost, M.D et. al. CEO & Chairman 28,700 $9.12 $261,617.55
04/10/2014 Phillip Frost, M.D et. al. CEO & Chairman 20,400 $9.28 $189,229.02
04/11/2014 Phillip Frost, M.D et. al. CEO & Chairman 63,400 $8.81 $558,740.68
04/14/2014 Phillip Frost, M.D et. al. CEO & Chairman 110,600 $8.46 $935,642.82
04/15/2014 Jane PH D. Hsiao Vice Chairman & CTO 10,000 $8.03 $80,300.00
04/15/2014 Phillip Frost, M.D et. al. CEO & Chairman 129,800 $8.04 $1,043,617.96
04/17/2014 Phillip Frost, M.D et. al. CEO & Chairman 51,000 $8.15 $415,667.79
04/21/2014 Phillip Frost, M.D et. al. CEO & Chairman 100,000 $8.32 $832,220.00
04/22/2014 Phillip Frost, M.D et. al. CEO & Chairman 89,500 $8.29 $741,716.66
04/23/2014 Phillip Frost, M.D et. al. CEO & Chairman 36,300 $8.17 $296,524.22
04/24/2014 Phillip Frost, M.D et. al. CEO & Chairman 12,400 $8.25 $102,329.00
04/25/2014 Phillip Frost, M.D et. al. CEO & Chairman 36,200 $8.04 $291,118.18
04/30/2014 Phillip Frost, M.D et. al. CEO & Chairman 25,000 $8.22 $205,593.00
05/01/2014 Phillip Frost, M.D et. al. CEO & Chairman 20,000 $8.36 $167,175.65
05/02/2014 Phillip Frost, M.D et. al. CEO & Chairman 26,000 $8.26 $214,858.46
05/05/2014 Phillip Frost, M.D et. al. CEO & Chairman 16,500 $8.36 $137,915.00
05/06/2014 Phillip Frost, M.D et. al. CEO & Chairman 33,900 $8.24 $279,407.45
05/07/2014 Phillip Frost, M.D et. al. CEO & Chairman 37,500 $8.16 $306,181.41
05/08/2014 Phillip Frost, M.D et. al. CEO & Chairman 73,900 $8.06 $595,971.30
05/09/2014 Phillip Frost, M.D et. al. CEO & Chairman 100,000 $8.17 $816,970.00
05/12/2014 Phillip Frost, M.D et. al. CEO & Chairman 10,000 $8.46 $84,600.00
05/13/2014 Phillip Frost, M.D et. al. CEO & Chairman 20,400 $8.35 $170,428.66
05/14/2014 Phillip Frost, M.D et. al. CEO & Chairman 25,500 $8.20 $209,142.00
05/15/2014 Phillip Frost, M.D et. al. CEO & Chairman 24,400 $8.10 $197,541.75
05/20/2014 Phillip Frost, M.D et. al. CEO & Chairman 26,600 $8.26 $219,703.28
05/21/2014 Phillip Frost, M.D et. al. CEO & Chairman 10,000 $8.30 $83,021.96
05/30/2014 Phillip Frost, M.D et. al. CEO & Chairman 36,000 $8.60 $309,758.30
06/04/2014 Phillip Frost, M.D et. al. CEO & Chairman 20,000 $8.78 $175,619.25
06/06/2014 Phillip Frost, M.D et. al. CEO & Chairman 10,000 $9.30 $93,015.26
06/10/2014 Phillip Frost, M.D et. al. CEO & Chairman 20,500 $9.16 $187,753.80
06/11/2014 Phillip Frost, M.D et. al. CEO & Chairman 50,000 $9.09 $454,628.15
06/12/2014 Phillip Frost, M.D et. al. CEO & Chairman 50,000 $9.03 $451,342.74
06/18/2014 Phillip Frost, M.D et. al. CEO & Chairman 20,000 $9.35 $187,063.90
06/19/2014 Phillip Frost, M.D et. al. CEO & Chairman 50,000 $9.25 $462,492.15
06/20/2014 Phillip Frost, M.D et. al. CEO & Chairman 45,000 $9.17 $412,736.73
06/23/2014 Phillip Frost, M.D et. al. CEO & Chairman 15,000 $9.05 $135,797.00
06/24/2014 Phillip Frost, M.D et. al. CEO & Chairman 40,000 $8.85 $353,856.52
06/25/2014 Phillip Frost, M.D et. al. CEO & Chairman 65,000 $8.65 $562,443.36
06/27/2014 Phillip Frost, M.D et. al. CEO & Chairman 20,000 $8.96 $179,228.80
06/30/2014 Phillip Frost, M.D et. al. CEO & Chairman 15,000 $8.94 $134,143.74
07/01/2014 Phillip Frost, M.D et. al. CEO & Chairman 15,000 $8.90 $133,535.42
07/02/2014 Phillip Frost, M.D et. al. CEO & Chairman 13,000 $8.78 $114,119.77
07/03/2014 Phillip Frost, M.D et. al. CEO & Chairman 45,800 $8.90 $407,773.70
07/07/2014 Phillip Frost, M.D et. al. CEO & Chairman 27,000 $8.79 $237,435.85
07/08/2014 Phillip Frost, M.D et. al. CEO & Chairman 30,000 $8.58 $257,503.12

Below is a chart showing the "days to cover" for OPK over time:

Loading+chart++2014+TickerTech.com

And looking at the chart below, OPK's low point in its 52 week range is $7.14 per share, with $12.95 as the 52 week high point — that compares with a last trade of $8.76.

Opko Health Inc Moving Averages Chart

In recent trading, shares of Opko Health Inc ( OPK) were changing hands at $8.76/share.

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