Menlo Therapeutics (FOMX) Short Interest Ratio & Short Volume

Short interest is the volume of Menlo Therapeutics shares that have been sold short but have not yet been closed out or covered. As of February 14th, traders have sold 3,330,000 shares of FOMX short. Learn More on Menlo Therapeutics' 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. FOMX shares currently have a short interest ratio of 6.0. Learn More on Menlo Therapeutics's short interest ratio.

Menlo Therapeutics saw a increase in short interest in February. As of February 14th, there was short interest totaling 3,330,000 shares, an increase of 24.7% from the previous total of 2,670,000 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 sector of "medical" compare to Menlo Therapeutics: MediWound Ltd. (2.52%), FitLife Brands, Inc. (0.11%), ChromaDex Co. (3.31%), Natural Alternatives International, Inc. (0.24%), Mannatech, Incorporated (0.09%), Aurora Cannabis Inc. (52.55%), biote Corp. (3.09%), Mind Medicine (MindMed) Inc. (25.69%), INmune Bio, Inc. (12.66%), 908 Devices Inc. (5.16%),

As of the most recent reporting period, the following stocks had the largest short interest positions: Tesla, Inc. ($11.87 billion), Charter Communications, Inc. ($5.15 billion), Microchip Technology Incorporated ($2.98 billion), Match Group, Inc. ($2.25 billion), The Charles Schwab Co. ($2.09 billion), Simon Property Group, Inc. ($2.06 billion), Tiffany & Co. ($1.81 billion), Hormel Foods Co. ($1.66 billion), Omnicom Group Inc. ($1.61 billion), and International Flavors & Fragrances Inc. ($1.54 billion). View all of the most shorted stocks.

Short selling FOMX is an investing strategy that aims to generate trading profit from Menlo Therapeutics 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 Menlo Therapeutics occurs when it has a large amount of short interest and its stock increases in price. This forces short sellers to cover their short interest positions by buying actual shares of FOMX, 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 FOMX, twice per month. The most recent reporting period available is February, 14 2020.