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Bets against industrial stocks moved lower from the middle of January even as the sector — which has an 8.5% weightage on S&P — remained largely unchanged during the month.
Average short interest across S&P 500 industrial stocks dropped to 1.98% as of January 31 from 2.08% on Jan. 12.
The Industrial Select Sector SPDR Fund ETF (NYSEARCA:XLI), which has risen 5.47% YTD compared to a 6.46% gain by the S&P 500, saw its largest contributors General Electric (GE), Caterpillar (CAT), and Uber (UBER) hold short interests of 0.77%, 1.56% and 2.89%, respectively. This compares with 0.77%, 1.81%, and 3.49% as of January 12th.
Stocks with the largest and least short positions
Ranked by short interest as a percentage of shares float
Meanwhile, behemoths like Boeing (BA), Honeywell (HON), United Parcel Services (UPS), and 3M (MMM) held short interests of 1.59%, 0.65%, 0.90%, 1.64%, and 1.20%.
Among the bunch, freight transportation services firm C.H. Robinson Worldwide (CHRW) was the most shorted stock at 6.96% compared to 7.51% as of Jan. 12th.
Next in line was American Airlines Group (AAL), holding a short interest of 6.23% compared to 7.61% as of Jan. 12th. Other airlines like United Airlines (UAL), Southwest (LUV), and Delta (DAL) had short interests of 5.18%, 3.46%, and 2.84%, respectively.
On the other hand, Lockheed Martin (LMT) was the least-shorted stock at 0.65% compared to 0.96% as of Jan. 12. Other defense contractors like General Dynamics (GD), RTX (RTX), Northrop Grumman (NOC) had short interests of 0.74%, 3.92%, 2.05%, respectively.
In terms of sub-sectors, Software remained the most shorted industry within the Industrial sector with 5.29% short interest at the end of January, down from 5.01% as of mid-Jan.
Industrial Conglomerates, Environmental and Facilities Services, and Ground Transportation were among the least shorted industries within the sector, with short interests of 0.91%, 0.82%, and 0.99%, respectively.
