Arena Pharmaceuticals (ARNA) Short Interest Ratio & Short Volume

Short interest is the volume of Arena Pharmaceuticals shares that have been sold short but have not yet been closed out or covered. As of February 28th, traders have sold 6,020,000 shares of ARNA short. Learn More on Arena Pharmaceuticals' current short interest.

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. ARNA shares currently have a short interest ratio of 4.0. Learn More on Arena Pharmaceuticals's short interest ratio.

Arena Pharmaceuticals saw a increase in short interest in February. As of February 28th, there was short interest totaling 6,020,000 shares, an increase of 17.8% from the previous total of 5,110,000 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.

Here is how the short interest of companies in the industry of "biotechnology" compare to Arena Pharmaceuticals: Biogen Inc. (2.60%), Incyte Co. (4.42%), United Therapeutics Co. (4.27%), Neurocrine Biosciences, Inc. (4.26%), Exelixis, Inc. (7.05%), BioMarin Pharmaceutical Inc. (2.22%), Exact Sciences Co. (5.84%), Repligen Co. (6.49%), Halozyme Therapeutics, Inc. (8.66%), Madrigal Pharmaceuticals, Inc. (23.10%),

As of the most recent reporting period, the following stocks had the largest short interest positions: Charter Communications, Inc. ($5.96 billion), Palo Alto Networks, Inc. ($4.37 billion), Lucid Group, Inc. ($2.87 billion), Moderna, Inc. ($2.70 billion), Rivian Automotive, Inc. ($2.31 billion), Wayfair Inc. ($2.29 billion), Snap Inc. ($2.23 billion), Datadog, Inc. ($2.21 billion), Live Nation Entertainment, Inc. ($1.96 billion), and Zoom Video Communications, Inc. ($1.89 billion). View all of the most shorted stocks.

Short selling ARNA is an investing strategy that aims to generate trading profit from Arena Pharmaceuticals as its price is falling. To short a 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 a stock 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 Arena Pharmaceuticals 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 ARNA, 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 ARNA, twice per month. The most recent reporting period available is February, 28 2022.