Nowadays, there are tons of indicators for Research In Motion Ltd (NASDAQ:BBRY) readers to pay attention to, but it’s useful to be aware of a company’s short interest. Two metrics typically used are: (a) the chunk of a company’s shares that short sellers are presently short selling, in addition to (b) the change in shorting activity.
Heightened shorting usually indicates what you’d think: Wall Street has turned less bullish on the stock. Overselling, though, may have a bullish effect on share price, as the shorts may be forced to cover their positions.
Within our database, it is not a secret that we monitor hedgies’ interest, but it is eqaully as beneficial to pair this information with overall short sale information. In some high-profile cases, mega- investors might share that they’re short on a stock, but it is not an SEC requirement. Nevertheless, many individual investors might wish to avoid heavily short sold equities with elevated hedge fund support, while others might prefer short-squeeze plays. For traders searching for a proven piggybacking strategy, discover the details of our premium strategy.
With that in mind, let’s take a look at the key data swirling around Research In Motion Ltd (NASDAQ:BBRY).
Looking at the latest FINRA data, which is reported two times every month, we can realize that Research In Motion Ltd (NASDAQ:BBRY) has a short interest of 35.3% of float. This indicates a negligible increase from the previous filing period. With a total float of 485.14M shares, this represents a short ratio of 6.90.
Also, insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has experienced transactions within the past 180 days. Over the last 180-day time period, Research In Motion Ltd (NASDAQ:BBRY) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also review activity in other stocks similar to Research In Motion Ltd (NASDAQ:BBRY). These stocks are Telecom Argentina S.A. (ADR) (NYSE:TEO), Neustar Inc (NYSE:NSR), Telecom Italia S.p.A. (ADR) (NYSE:TI), Level 3 Communications, Inc. (NYSE:LVLT), and Telecom Italia SPA CL ‘A’ (NYSE:TI-A). This group of stocks are the members of the diversified communication services industry and their market caps match BBRY’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Telecom Argentina S.A. (ADR) (NYSE:TEO)||7||0||0|
|Neustar Inc (NYSE:NSR)||17||0||1|
|Telecom Italia S.p.A. (ADR) (NYSE:TI)||6||0||0|
|Level 3 Communications, Inc. (NYSE:LVLT)||19||1||12|
|Telecom Italia SPA CL ‘A’ (NYSE:TI-A)||0||0|
These tools–short sale information, hedge fund data and insider sentiment–are what all investors should pay attention to. Though it is hard to discover a usable strategy from short selling data, hedgie and insider sentiment give lots of market beating opportunities if you know where to look.