How Are The Shorts Trading Cheniere Energy, Inc. (LNG)?

Nowadays, there are many indicators for Cheniere Energy, Inc. (NYSEAMEX:LNG) investors to watch, but it’s useful to be aware of a stock’s short interest. Some metrics we can use are: (a) the percentage of a stock’s float that bears are presently selling, in addition to (b) the difference in shorting activity.

More bearish shorting usually indicates what it implies: Wall Street has turned less optimistic about a company. Overselling, though, sometimes has a bullish effect on stock price, as the shorts can be forced to buy their positions.

Within our database, it is not a secret that we track the smart money’s sentiment, but it is also important to group this data with overall short interest data. In some high-profile cases, mega- investors could indicate that they’re bearish on a company, but it is not an SEC requirement. Nevertheless, some retail investors may wish to stay away from heavily shorted equities with elevated hedge fund investment, while others may desire short-squeeze candidates. For traders searching for a proven piggybacking strategy, discover the details of our premium strategy.

Let us take a gander at the latest data surrounding Cheniere Energy, Inc. (NYSEAMEX:LNG).

Analyzing the newest FINRA short interest data, which is released two times monthly, we can realize that Cheniere Energy, Inc. (NYSEAMEX:LNG) has a short interest of 5.80% of float. This is a negligible change from the previous two-week period. With a float of 160.78M shares, this represents a short ratio of 3.1.

It is also crucial to keep an eye on hedge fund sentiment via their 13F forms. According to our data, Point State Capital, managed by Sean Cullinan, holds the biggest position in Cheniere Energy, Inc. (NYSEAMEX:LNG). Point State Capital has a $384.3 million position in the stock, comprising 5.6% of its 13F portfolio. On Point State Capital’s heels is Orbis Investment Management, managed by William B. Gray, which held a $139.6 million position; 1.2% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include Michael Lowenstein’s Kensico Capital, Dan Loeb’s Third Point and Phill Gross and Robert Atchinson’s Adage Capital Management.

Also, insider buying is most useful when the company in question has experienced transactions within the past 180 days. Over the last half-year time period, Cheniere Energy, Inc. (NYSEAMEX:LNG) has experienced zero unique insiders buying, and 12 insider sales (see the details of insider trades here).

Let’s go over activity in other stocks similar to Cheniere Energy, Inc. (NYSEAMEX:LNG). These stocks are Markwest Energy Partners LP (NYSE:MWE), Penn West Petroleum Ltd (USA) (NYSE:PWE), QEP Resources Inc (NYSE:QEP), Whiting Petroleum Corp (NYSE:WLL), and Helmerich & Payne, Inc. (NYSE:HP). This group of stocks are the members of the oil & gas drilling & exploration industry and their market caps are similar to LNG’s market cap.

The aforementioned figures–short data, hedge fund info and insider trading history–are something all readers should be aware of. Though it’s difficult to find a usable strategy from short selling filings, hedgie and insider sentiment provide lots of market beating opportunities if you know where to look.