Ares Capital Short Interest Ratio and Short Volume

Short interest is the volume of Ares Capital shares that have been sold short but have not yet been closed out or covered. As of September 30th, investors have sold 7,900,000 shares of ARCC short. 1.88% of Ares Capital's shares are currently sold short. View details.

The short interest ratio, also known as the "days to cover ratio", is calculated by dividing the number of shares of a stock sold short divided by its average trading volume. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. A short interest ratio of 10 or greater indicates strong pessimism about a stock. Ares Capital currently has a short interest ratio of 4.0.

Companies that have a short interest as a percentage of float below 10% indicates positive investor sentiment and few short sellers. Stocks with a short interest percentage above 10% is considered high, suggesting some investors are pessimistic about the stock. Companies with a short interest percentage of 20% or more indicates widespread negative sentiment. 1.88% of Ares Capital's floating shares are currently sold short.

Ares Capital saw a drop in short interest during the month of September. As of September 30th, there was short interest totaling 7,900,000 shares, a drop of 5.5% from the previous total of 8,360,000 shares. Changes in short volume can be used to identify positive and negative investor sentiment. Investors that short sell a stock are betting that its price will decline in the future. An increase in short sale volume suggests bearish (negative) sentiment among investors. A decrease on short sale volume suggests bullish (positive) sentiment.

Ares Capital currently has issued a total of 422,620,000 shares. Some of Ares Capital's outstanding shares are available for trading, while others are subject to various restrictions. The public float, also referred to as floating shares or "the float", are shares that publicly owned, unrestricted and available to trade on the open market. Ares Capital currently has a public float of 419,480,000 shares.

1.88% of Ares Capital's shares are currently sold short. Here is how the short interest of companies in the sub-industry of "asset management & custody banks" compare to Ares Capital: BlackRock, Inc. (0.85%), The Bank of New York Mellon Co. (0.81%), T. Rowe Price Group Inc (2.43%), State Street Co. (1.48%), Ameriprise Financial, Inc. (2.22%), Northern Trust Co. (2.10%), Franklin Resources, Inc. (10.34%), SEI Investments (1.09%), Eaton Vance Corp (1.16%), and Affiliated Managers Group, Inc. (4.93%).

As of the most recent reporting period, the following stocks had the largest short interest positions: Charter Communications Inc ($5.12 billion), Aon PLC ($3.76 billion), Clorox Co ($3.07 billion), ViacomCBS Inc. ($2.89 billion), Analog Devices, Inc. ($2.49 billion), Moderna, Inc. ($2.37 billion), Datadog, Inc. ($2.29 billion), Uber Technologies, Inc. ($2.22 billion), Kroger Co ($2.20 billion), and Simon Property Group, Inc. ($1.88 billion). View all of the most shorted stocks.

Short selling ARCC is an investing strategy that aims to generate trading profit from Ares Capital as its price is falling. Ares Capital's stock is trading down $0.03 today. To short Ares Capital stock, an investor borrows shares, sells them and buys the shares back on the public market later to return it to the lender. Short sellers are betting that Ares Capital will decline in price. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. The difference between the sell price and the buy price is the trader's profit.

A short squeeze for Ares Capital occurs when it has a large amount of short interest and its stock appreciates in price. This forces short sellers to cover their short interest positions by buying actual shares of ARCC, which in turn drives the price of the stock up even further.

Short interest is typically published by a stock exchange once per month. However, NASDAQ publishes a report for U.S. stocks, including ARCC, twice per month. The most recent reporting period available is September, 30 2020.