Rockwell Automation Becomes #164 Most Shorted S&P 500 Component, Replacing American Water Works

The most recent short interest data has been released for the 11/15/2016 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, Rockwell Automation, Inc. ( ROK) has taken over the position of #164 most shorted S&P 500 component, from American Water Works Co, Inc. ( AWK) which is now in the #163 spot. The "days to cover" at 11/15/2016 was 3.46 for ROK, and 3.48 for AWK; this compares to the average across all S&P 500 components of 3.27 (down from the average back on the 10/31/2016 settlement date of 4.30). The chart below shows the movement over time of the "days to cover" values of both ROK and AWK, versus the average S&P 500 component.

Loading+chart++2016+TickerTech.com

Below is a chart showing the relative positions of ROK versus AWK 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

Cramer: These Stocks Look Like 'Easy Pickings'

Cramer: The Best Performers Show No Signs of Letting Up

CSX, Arconic Top Sector Gains as Shareholder Activism Drives Them Higher

5 Things You Must Know Before the Market Opens Thursday

How to Play the Coming Robot Revolution