Short Interest In Medifast Declines 12.2%

The most recent short interest data has been released by the NASDAQ for the 07/31/2014 settlement date, which shows a 366,543 share decrease in total short interest for Medifast Inc (MED), to 2,646,763, a decrease of 12.16% since 07/15/2014. 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 MED at the 07/31/2014 settlement increased to 139,095, as compared to 119,265 at the 07/15/2014 report. That brought "days to cover" down to 19.03, a 24.69% decrease from the 25.27 days to cover calculated at the previous short interest data release.

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

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

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 MED had been shorted as a hedge.

The chart below shows the one year performance of MED shares, versus its 200 day moving average. Looking at this chart, MED's low point in its 52 week range is $23.02 per share, with $34.40 as the 52 week high point — that compares with a last trade of $26.33.

Medifast Inc Chart

According to the ETF Finder at ETF Channel, MED makes up 71.94% of the WisdomTree SmallCap Earnings Fund ETF (EES) which is lower by about 1% on the day Tuesday.

In afternoon trading Tuesday, MED was down about 2% on the day.

More from Stocks

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

Dow Gets Swept Into Nasty Reversal Even as Nasdaq Posts New Record

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

What Will GM Do With Cruise -- and Is Its Stock Worth $55?

What Will GM Do With Cruise -- and Is Its Stock Worth $55?

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

This Should Be Your Retirement Savings Plan When the Stock Market Crashes

This Should Be Your Retirement Savings Plan When the Stock Market Crashes