Forthcoming U.S. Earnings – The Short Perspective

Amongst the plethora of companies reporting earnings this week, we focus our attention on those U.S. stocks announcing results which are also subject to interesting investor sentiment. Stocks covered include: Boston Properties Inc (NYSE:BXP), Vivus Inc (NASDAQ:VVUS), Pfizer (NYSE:PFE), First Solar Inc (NASDAQ:FSLR) and Ford Motor Company (NYSE:F).

The share price of Boston Properties Inc, the real estate operations company, has performed outstandingly over the past quarter. Despite this, shorts have been piling in as short interest has increased from 3.5% to 5.5% of total shares outstanding on loan since January.

Investors will be keeping a close watch on First Solar, as the world’s largest solar stock by market value will lead earnings updates for the sector. The share price tumbled after reaching an annual high in February, but institutional investors remain bullish as holdings have increased. Short interest continues to remain very high and currently stands at 20% of total shares outstanding on loan, with more the 80% of the lendable supply currently out on loan.

Ford recently featured as the Data Explorers stock of the day. The shares have tumbled and ahead of earnings, short interest remains flat at 4.5% of total shares outstanding on loan. However, institutional investors have been increasing their holdings over the past month and now own 22% of the total shares.

Healthcare companies Vivus and Pfizer are also reporting first quarter earnings this week. Vivus shares tumbled early this year but recent positive news on new drug development, including a weigh-loss drug, has resulted in a slight recovery. However, the stock remains heavily shorted with short interest having increased over the last month from 12% to 15% of total shares outstanding on loan. This represents almost two thirds of the shares that can be borrowed.

Global player, Pfizer Inc has seen its share price soar over the past few months reaching new annual highs. The large market capitalization of the company means that short interest remains very low when expressed as a percentage of the total shares. However, there has been an increase over the past month from 0.15% to 0.4% of total shares outstanding on loan.