Royalty Pharma Short Interest Ratio and Short Volume

Short interest is the volume of Royalty Pharma shares that have been sold short but have not yet been covered or closed out. As of April 15th, traders have sold 17,880,000 shares of RPRX short. 5.92% of Royalty Pharma'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. Royalty Pharma currently has a short interest ratio of 7.0.

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. 5.92% of Royalty Pharma's floating shares are currently sold short.

Royalty Pharma saw a drop in short interest in the month of April. As of April 15th, there was short interest totaling 17,880,000 shares, a drop of 1.4% from the previous total of 18,140,000 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.

Royalty Pharma currently has issued a total of 607,111,000 shares. Some of Royalty Pharma'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. Royalty Pharma currently has a public float of 301,860,000 shares.

5.92% of Royalty Pharma's shares are currently sold short. Here is how the short interest of companies in the sub-industry of "pharmaceuticals" compare to Royalty Pharma: Johnson & Johnson (0.57%), Pfizer Inc. (0.00%), AbbVie Inc. (0.00%), Merck & Co., Inc. (0.83%), Eli Lilly and Company (0.80%), Bristol-Myers Squibb (0.00%), Zoetis Inc. (0.96%), Horizon Therapeutics Public Limited (0.00%), Jazz Pharmaceuticals plc (8.72%), and Perrigo Company plc (4.21%).

As of the most recent reporting period, the following stocks had the largest short interest positions: Analog Devices, Inc. ($5.85 billion), Aon plc ($5.61 billion), Charter Communications, Inc. ($5.44 billion), Snap Inc. ($3.49 billion), Airbnb, Inc. ($3.35 billion), Peloton Interactive, Inc. ($2.53 billion), ViacomCBS Inc. ($2.48 billion), Expedia Group, Inc. ($2.39 billion), The Kroger Co. ($2.26 billion), and Nuance Communications, Inc. ($2.18 billion). View all of the most shorted stocks.

Short selling RPRX is an investing strategy that aims to generate trading profit from Royalty Pharma as its price is falling. Royalty Pharma's stock is trading down $1.10 today. To short Royalty Pharma 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 Royalty Pharma 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 Royalty Pharma 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 RPRX, 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 RPRX, twice per month. The most recent reporting period available is April, 15 2021.