ServiceNow - NOW Short Interest Ratio & Short Volume

Short interest is the volume of ServiceNow shares that have been sold short but have not yet been covered or closed out. As of January 15th, investors have sold 2,900,000 shares of NOW short. Learn More on ServiceNow'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. NOW shares currently have a short interest ratio of 2.0. Learn More on ServiceNow's short interest ratio.

As of the most recent reporting period, the following institutional investors, funds, and major shareholders have reported short positions of ServiceNow: Mission Wealth Management LP, Otter Creek Advisors LLC, Concourse Financial Group Securities Inc., Covenant Asset Management LLC, MUFG Securities EMEA plc, XR Securities LLC, XR Securities LLC, Parallax Volatility Advisers L.P., Balyasny Asset Management LLC, Jane Street Group LLC, Maven Securities LTD, BNP Paribas Arbitrage SNC, Paloma Partners Management Co, Parallax Volatility Advisers L.P., Lido Advisors LLC, Caas Capital Management LP, Capital Fund Management S.A., Citadel Advisors LLC, Point72 Hong Kong Ltd, Cubist Systematic Strategies LLC, Wolverine Trading LLC, Verition Fund Management LLC, Boothbay Fund Management LLC, Centiva Capital LP, Maven Securities LTD, Capstone Investment Advisors LLC, Twin Tree Management LP, UBS Group AG, Group One Trading L.P., MUFG Securities EMEA plc, Allianz Asset Management GmbH, and IMC Chicago LLC. These positions are disclosed in Form 13F filings with the Securities and Exchange Commission.

ServiceNow saw a decrease in short interest in the month of January. As of January 15th, there was short interest totaling 2,900,000 shares, a decrease of 15.5% from the previous total of 3,430,000 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 "prepackaged software" compare to ServiceNow: VMware, Inc. (1.78%), Oracle Co. (0.92%), Intuit Inc. (0.84%), Shopify Inc. (4.07%), NetEase, Inc. (0.94%), Synopsys, Inc. (1.16%), Snowflake Inc. (4.26%), Cadence Design Systems, Inc. (0.98%), SAP SE (0.14%), and Autodesk, Inc. (1.06%).

As of the most recent reporting period, the following stocks had the largest short interest positions: Occidental Petroleum Co. ($3.43 billion), T. Rowe Price Group, Inc. ($2.26 billion), Coinbase Global, Inc. ($2.19 billion), Etsy, Inc. ($1.78 billion), Paramount Global ($1.77 billion), Old Dominion Freight Line, Inc. ($1.69 billion), United Rentals, Inc. ($1.53 billion), American Airlines Group Inc. ($1.52 billion), PG&E Co. ($1.48 billion), and Voya Financial, Inc. ($1.47 billion). View all of the most shorted stocks.

Short selling NOW is an investing strategy that aims to generate trading profit from ServiceNow as its price is falling. NOW shares are trading down $19.05 today. 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 ServiceNow 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 NOW, 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 NOW, twice per month. The most recent reporting period available is January, 15 2023.