Analyze the short-term interest of Micron Technology

Micron Technology's (NASDAQ:MU) free float percentage has fallen 6.58% since its last report. The company recently announced that it had 32.79 million shares sold short, or 2.98% of all common shares available for trading. Based on its trading volume, it would take traders an average of 1.9 days to cover their short positions.

Why short interest matters

Short interest is the number of shares that have been sold short but have not yet been covered or closed. Short selling is when a trader sells shares of a company they don't own, hoping the price will go down. Traders make money from short selling if the stock price goes down and they lose if it goes up.

Short interest is important to track as it can act as an indicator of market sentiment towards a particular stock. An increase in short interest may signal that investors have become more bearish, while a decrease in short interest may signal that they have become more bullish.

See also: List of best-selling stocks

Micron Technology Short Interest Graph (3 months)

As you can see from the chart above, the percentage of shares sold short for Micron Technology has declined since its last report. This does not mean the stock will rise in the short term, but traders should be aware that fewer stocks are being sold short.

Micron Technology's Short-Term Interest Comparison With Its Peers

Peer benchmarking is a popular technique among analysts and investors to assess a company's performance. A company's peer is another company that has similar characteristics, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy, or by performing your own similarity analysis.

According to Benzinga Pro, Micron Technology's peer group average for short-term interest as a percentage of float is 4.27%, which means the company has less short-term interest than the most of his peers.

Did you know that rising short interest can actually be bullish for a stock? This Benzinga Money article explains how you can profit from it.

This article was generated by Benzinga's automated content engine and has been reviewed by an editor.