We follow over 5,200 equities, ADRs and GDRs with short interest in Europe in our Blacklight SaaS platform and Black App with $286 billion of total short interest. Average Short Interest % of Float is 4.15% and S3 SI % Float (which includes synthetic longs created by every short sale in the Float number) is 3.82%. The average stock borrow fee is 0.67%. As a comparison, U.S. equites have an average SI % Float of 5.30%, S3 SI % Float of 4.77% and average stock borrow fee of 0.53%.
Looking at Short Interest as a % of Float, we do see a significant decrease in shares shorted, but just counting the total amount of physical shares shorted does not give a complete picture of short selling and short exposure. We need to look at Short Interest, or dollars at risk, to truly see what the shorts are doing.
S3 Analytics: Alibaba’s Stock Price and Short Interest Rises in Tandem
Short interest is Alibaba Group ADR (BABA US) had been in a $6 to $8 billion trading range from October 2015 to July 2016 but after reporting strong earnings on August 10th short interest has grown significantly along with its stock price.