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A stock with a high days to cover value compared to its peers would be considered to have a higher level of short interest as compared to those peers. This could mean short sellers are using the stock to hedge a long bet elsewhere, or could also mean that short sellers believe the price of the stock will decline. When short sellers eventually cover their positions, by definition there must be buying activity because a share that is currently sold short must be purchased to be covered. So investors tend to keep an eye on that days to cover metric, because a high value could predict a sharper price increase should the company put out some unexpectedly good news — short sellers might rush to cover positions, and if the days to cover number is high, it is more difficult to close those positions without sending the stock higher until the higher price produces enough sellers to generate the necessary volume.
As of October 30, 2015, short interest for Grupo Financiero Galicia S.A. (GGAL) stood at 2811514 shares, an increase compared to 2701142 shares on October 15, 2015. This short interest comprises 6.81 percent of the entire float. Short interest ratio now stands at 4 at the average volume of 743713 shares.
According to the latest short-interest data for the two-week period ended October 30, 2015, short interest for the stock of TD Ameritrade Holding Corp (AMTD) increased from 8586700 shares at the end of the settlement date of October 15, 2015 to 8846701 shares, marking an increase of 260001 shares. The current short interest accounts for 3.4 percent of the company’s total outstanding common shares and the days-to-cover short interest ratio, on the other hand, is 3 as of October 30, 2015, assuming average daily trading volume of 2929750 shares.
Short interest for the shares of Corrections Corp Of America (CXW) rose 3 percent from 6870435 shares on October 15, 2015 to 7077458 shares on October 30, 2015. Investors have taken short positions on 6.1 percent of the total common shares of the stock that are floating on the exchange. The days-to-cover short interest ratio is now at 10 days. It is based on average daily trading volume of 736987 shares.
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