Mfs Govt Mkts (NYSE:MGF) Shares Shorted: Short Interest Up 161.0% in September

Key Points

• Short interest surged 161% in September to 46,943 shares, representing approximately 0.1% of MGF’s outstanding shares and 1.1 days to cover.
• MGF shares recently traded at $13.63, below both their 50-day moving average of $13.97 and 200-day moving average of $14.23, with a 52-week range of $13.20 to $15.65.
• The fund announced a monthly dividend of $0.10 per share, equivalent to $1.20 annually and an 8.8% yield; institutional investors own 54.77% of the stock.

Mfs Govt Mkts (NYSE:MGF - Get Free Report) was the target of a significant increase in short interest in the month of September. As of September 30th, there was short interest totaling 46,943 shares, an increase of 161.0% from the September 15th total of 17,985 shares. Approximately 0.1% of the company's shares are sold short. Based on an average trading volume of 42,567 shares, the days-to-cover ratio is presently 1.1 days.

Mfs Govt Mkts Stock Performance

Shares of Mfs Govt Mkts stock traded down $0.02 on Monday, hitting $13.63. 4,562 shares of the company traded hands, compared to its average volume of 16,393. The stock's 50 day moving average price is $13.97 and its 200-day moving average price is $14.23. Mfs Govt Mkts has a 52 week low of $13.20 and a 52 week high of $15.65.

Mfs Govt Mkts Increases Dividend

The company also recently disclosed a monthly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 23rd will be paid a $0.10 dividend. This represents a $1.20 annualized dividend and a yield of 8.8%. This is an increase from Mfs Govt Mkts's previous monthly dividend of $0.10. The ex-dividend date of this dividend is Friday, October 23rd.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of MGF. 1607 Capital Partners LLC lifted its holdings in shares of Mfs Govt Mkts by 5.0% in the 2nd quarter. 1607 Capital Partners LLC now owns 2,392,698 shares of the company's stock worth $6,867,000 after buying an additional 113,961 shares during the period. Citadel Advisors LLC grew its position in shares of Mfs Govt Mkts by 606.8% during the 2nd quarter. Citadel Advisors LLC now owns 75,970 shares of the company's stock worth $218,000 after buying an additional 65,222 shares in the last quarter. Ameritas Advisory Services LLC grew its position in shares of Mfs Govt Mkts by 44.5% during the 2nd quarter. Ameritas Advisory Services LLC now owns 139,560 shares of the company's stock worth $401,000 after buying an additional 42,989 shares in the last quarter. Fortitude Advisory Group L.L.C. increased its stake in shares of Mfs Govt Mkts by 7.4% during the second quarter. Fortitude Advisory Group L.L.C. now owns 90,114 shares of the company's stock valued at $259,000 after buying an additional 6,185 shares during the period. Finally, Dynamic Advisor Solutions LLC increased its stake in shares of Mfs Govt Mkts by 12.6% during the second quarter. Dynamic Advisor Solutions LLC now owns 101,447 shares of the company's stock valued at $291,000 after buying an additional 11,365 shares during the period. 54.77% of the stock is currently owned by hedge funds and other institutional investors.

About Mfs Govt Mkts

MFS Government Markets Income Trust NYSE: MGF is a closed-end investment fund managed by MFS Investment Management. The fund seeks to provide current income by investing primarily in securities issued or guaranteed by the U.S. government, its agencies and instrumentalities, as well as other government-related fixed-income investments.

The portfolio may include U.S. Treasury securities, mortgage-related securities issued or guaranteed by government-sponsored entities, and other debt instruments considered consistent with the fund's investment objective.

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