Broadcom, trading under the symbol AVGO on the NYSE, has seen a 4.41% decrease in its short float percentage. The company recently reported that 5.24 million of its shares are being sold short, accounting for 1.3% of all available shares for trading. Traders would require an average of 2.58 days to cover their short positions based on the current trading volume.
Short interest is an important metric to track as it indicates the number of shares that have been sold short but not yet covered or closed. It can serve as an indicator of market sentiment towards a particular stock. An increase in short interest may signal bearish sentiment from investors, while a decrease may indicate bullish sentiment.
The chart depicting Broadcom’s short interest over the past three months shows a decrease in the percentage of shares being shorted. This does not guarantee an immediate rise in the stock price, but it is important for traders to note that fewer shares are being shorted.
Comparing Broadcom’s short interest to its peers is a common technique used by analysts and investors to evaluate the company’s performance. Broadcom’s short interest as a percentage of float is lower than the peer group average of 4.65%, indicating less short interest compared to its peers.
Interestingly, increasing short interest can sometimes be bullish for a stock. This phenomenon, known as a short squeeze, is explained in a post on Benzinga Money.
It is important to note that this article was generated by Benzinga’s automated content engine and reviewed by an editor.
In summary, Broadcom has experienced a decrease in short float percentage, with 5.24 million shares sold short. Short interest is a key metric to monitor as it reflects market sentiment, and Broadcom has less short interest compared to its peers. Traders should be aware of the implications of short interest and how it can impact stock performance.
Article Source
https://www.benzinga.com/insights/short-sellers/24/05/39030391/how-is-the-market-feeling-about-broadcom