Embraer Short Interest Ratio and Short Volume

Short interest is the volume of Embraer shares that have been sold short but have not yet been closed out or covered. As of June 30th, traders have sold 5,230,000 shares of ERJ short. 2.85% of Embraer's shares are currently sold short. Learn More on Embraer's 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. Embraer currently has a short interest ratio of 2.0. Learn More on a good short interest ratio for Embraer

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. 2.85% of Embraer's floating shares are currently sold short.

Embraer saw a drop in short interest in June. As of June 30th, there was short interest totaling 5,230,000 shares, a drop of 8.6% from the previous total of 5,720,000 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.

Embraer currently has issued a total of 184,020,000 shares. Some of Embraer'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. Embraer currently has a public float of 183,560,000 shares.

2.85% of Embraer's shares are currently sold short. Here is how the short interest of companies in the sector of "aerospace" compare to Embraer: CAE Inc. (0.00%), Huntington Ingalls Industries, Inc. (2.05%), Virgin Galactic Holdings, Inc. (17.41%), Elbit Systems Ltd. (0.33%), Hexcel Co. (10.50%), Curtiss-Wright Co. (1.71%), Meggitt PLC (0.00%), Spirit AeroSystems Holdings, Inc. (4.65%), Leonardo S.p.a. (0.00%), and Aerojet Rocketdyne Holdings, Inc. (9.21%).

As of the most recent reporting period, the following stocks had the largest short interest positions: Advanced Micro Devices, Inc. ($8.32 billion), AstraZeneca PLC ($8.20 billion), Square, Inc. ($7.79 billion), Analog Devices, Inc. ($7.16 billion), S&P Global Inc. ($7.07 billion), Aon plc ($6.17 billion), Charter Communications, Inc. ($5.38 billion), Wayfair Inc. ($4.80 billion), AMC Entertainment Holdings, Inc. ($4.28 billion), and Snowflake Inc. ($3.19 billion). View all of the most shorted stocks.

Short selling ERJ is an investing strategy that aims to generate trading profit from Embraer as its price is falling. Embraer's stock is trading down $0.15 today. To short Embraer 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 Embraer 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 Embraer 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 ERJ, 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 ERJ, twice per month. The most recent reporting period available is June, 30 2021.