The European Food & Staples Retailing sector has seen particularly unusual activity in short interest for two of its UK listed constituents. OTAS has identified both Morrison’s and Sainsbury’s have seen an extreme* contraction in the percentage of free float on loan in the last week suggesting Hedge Funds are aggressively re-thinking short bets against both companies. Moreover, both companies are due to report financials imminently.
OTAS applications Top Stocks and Lingo both alerted you to these moves(and other outlying factors)
A further deep dive across multiple OTAS observables can be conducted via the single stock Core Summary providing a complete assessment of potential directional triggers.
For example Morrison’s screens positively due to the contraction in short interest but has a number of other potential risk factors to consider:-
- Shares up 32% YTD and have outperformed the European Retail sector by 43%
- EPS momentum vs Price diverged from long term trend suggesting the market is already pricing in a better outlook for Morrison’s.
- Shares currently trading at a 13% premium to analyst ave. price target.
- Small pull back in price has prompted higher degree of short covering into earnings, with short interest still at around 14% of free float.
- ‘Experts’ still remain negative on the stock as identified by the TIM Alpha Capture indicator.
Particularly powerful around financial reporting, OTAS’s award winning analytics provides you with multi-asset intelligence and risk outliers in one ‘go-to’ place, allowing you to make more informed investment decisions and provide a better understanding of factors which could impact on share prices.
*statistically higher than average 5 day moves over the last 2 years