Houghton Mifflin Harcourt Stock Sees Short Interest Move 11% Lower

The most recent short interest data has been released for the 11/15/2016 settlement date, which shows a 543,713 share decrease in total short interest for Houghton Mifflin Harcourt Co. (HMHC), to 4,413,186, a decrease of 10.97% since 10/31/2016. 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 HMHC at the 11/15/2016 settlement increased to 1,705,066, as compared to 610,411 at the 10/31/2016 report. That brought "days to cover" down to 2.59, a 68.13% decrease from the 8.12 days to cover calculated at the previous short interest data release.

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

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

Loading+chart++2016+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 HMHC had been shorted as a hedge.

The chart below shows the one year performance of HMHC shares, versus its 200 day moving average. Looking at this chart, HMHC's low point in its 52 week range is $9.15 per share, with $22.01 as the 52 week high point — that compares with a last trade of $11.10.

Houghton Mifflin Harcourt Co. Chart

According to the ETF Finder at ETF Channel, HMHC makes up 1.15% of the Guru Index ETF (GURU) which is lower by about 0.6% on the day Monday.

More from Stocks

3 New Investing Myths That Must Be Busted

3 New Investing Myths That Must Be Busted

Why a Global Stock Market Crash Is Coming

Why a Global Stock Market Crash Is Coming

Dump All Your Disney Stock: Doug Kass Insider

Dump All Your Disney Stock: Doug Kass Insider

3 Must Know Market Insights From TheStreet's Jim Cramer Before Wednesday's Open

3 Must Know Market Insights From TheStreet's Jim Cramer Before Wednesday's Open

CHART: Even Consumer Staples Stocks Are Being Pummeled in Tuesday's Market Rout

CHART: Even Consumer Staples Stocks Are Being Pummeled in Tuesday's Market Rout