At present, there are many tools for Nokia Corporation (ADR) (NYSE:NOK) traders to keep an eye on, but it is smart to monitor a company’s shorts. Some metrics we can use are: (a) the chunk of a company’s tradable shares that short sellers are presently short selling, and (b) the difference in short interest.
Augmented bearish shorting typically indicates what it implies: investors have grown less fond of a company. Overselling, though, sometimes has a bullish effect on share price, as short-ers can be forced to buy their stock.
At Insider Monkey, it is no secret that we track the smart money’s sentiment, but it is eqaully as important to group this information with overall short interest information. In some high-profile cases, large investors may share that they’re bearish on a particular company, but it’s not an SEC requirement. Nonetheless, many individual investors may want to avoid heavily short sold companies with elevated hedge fund support, while others may prefer short-squeeze plays. For readers wanting a time-tested piggybacking strategy, discover the details of our premium strategy.
Let us take a look at the key data surrounding Nokia Corporation (ADR) (NYSE:NOK).
Analyzing the latest FINRA short interest data, which is reported twice each month, we can see that Nokia Corporation (ADR) (NYSE:NOK) has a short interest of 5.9% of float. This indicates a slight increase from the previous two-week period. With a total float of 3.71B shares, this reveals a short ratio of 7.10.
It is also beneficial to keep an eye on hedge fund holdings via their 13F forms. When analyzing the funds we track, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital had the most valuable position in Nokia Corporation (ADR) (NYSE:NOK), worth close to $146.4 million, accounting for 1.2% of its total 13F portfolio. The 2nd biggest stake is held by Jim Simons of Renaissance Technologies, with a $36.2 million position; 0.1% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Francis Chou’s Chou Associates Management, Israel Englander’s Millennium Management and Michael Hintze’s CQS Cayman LP.
Also, insider purchases made by high-level executives is most useful when the company we’re looking at has experienced transactions within the past 180 days. Over the last six-month time frame, Nokia Corporation (ADR) (NYSE:NOK) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also examine activity in other stocks similar to Nokia Corporation (ADR) (NYSE:NOK). These stocks are JDS Uniphase Corp (NASDAQ:JDSU), Echostar Corporation (NASDAQ:SATS), Ericsson (ADR) (NASDAQ:ERIC), Harris Corporation (NYSE:HRS), and Motorola Solutions Inc (NYSE:MSI). This group of stocks are in the communication equipment industry and their market caps are similar to NOK’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|JDS Uniphase Corp (NASDAQ:JDSU)||22||0||6|
|Echostar Corporation (NASDAQ:SATS)||25||0||8|
|Ericsson (ADR) (NASDAQ:ERIC)||16||0||0|
|Harris Corporation (NYSE:HRS)||17||0||7|
|Motorola Solutions Inc (NYSE:MSI)||39||0||6|
The aforementioned metrics–short data, hedge fund info and insider trading history–are what every investor should track. Though it is difficult to formulate a discernable strategy from short interest data, hedgie and insider sentiment provide plenty of market beating opportunities if you know where to look.