Bets against utility stocks were marginally higher in February compared to January this year. Average short interest across S&P 500 utility stocks edged 2 basis points higher to 1.67% of shares float at the end of February.
The S&P 500’s utility sector (NYSEARCA:XLU) is down 0.05%, compared to the broader S&P 500, which climbed 7.2% from the start of the year.
Industry Analysis:
Average short interest as a percentage of floating shares
Short interest for Independent Power, which only includes AES Corp (AES), currently stands at 1.62%, compared to 3.18% at January end. The subsector saw a 156 basis point drop, the biggest amongst utilities.
Water utilities was the least shorted within the sector with 1.29% short interest as of February end, up from 1.19% at January end.
Gas utilities was the most shorted subsector, which is currently at 2.26%, a 19 bps dip from 2.45% at January end.
NextEra Energy (NEE), Southern (SO), and Duke Energy (DUK), the three largest contributors to the index, have short interests of 1.09%, 1.34%, and 1.19%, respectively.
Stocks with the largest and least short positions
Ranked by short interest as a percentage of shares float
NRG Energy (NRG) was the most shorted utility stock, with 15.7M shares sold short as of Feb. end, or 8.59% of the shares float.
CMS Energy (CMS) was the second most shorted stock at 3.92% of shares float, followed by Pinnacle West (PNW) with short interest of 2.94% and PPL (PPL) with 2.34%.
Evergy (EVRG) is the least shorted stock, with 2.2M shares sold short or 0.97% of the shares float, followed by NextEra Energy (NEE) and PG&E (PCG) with short interest of 1.09% and 1.13% respectively.