In our new rank based on the most recent short interest data, Omnicom Group, Inc. (NYSE: OMC) has taken over the position of #5 most shorted S&P 500 component, from Deere & Co. (NYSE: DE) which is now in the #9 spot. The “days to cover” at 11/15/2016 was 10.19 for OMC, and 9.17 for DE; 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 OMC and DE, versus the average S&P 500 component. This could mean short sellers are using the stock to hedge a long bet elsewhere, or could also mean that short sellers believe the price of the stock will decline. 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.

Source: Forbes November 28, 2016 20:07 UTC