Takeda Pharmaceutical Short Interest Ratio and Short Volume

Short interest is the volume of Takeda Pharmaceutical shares that have been sold short but have not yet been covered or closed out. As of December 31st, investors have sold 7,860,000 shares of TAK short. 0.25% of Takeda Pharmaceutical'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. Takeda Pharmaceutical currently has a short interest ratio of 6.0.

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. 0.25% of Takeda Pharmaceutical's floating shares are currently sold short.

Takeda Pharmaceutical saw a increase in short interest during the month of December. As of December 31st, there was short interest totaling 7,860,000 shares, an increase of 19.6% from the previous total of 6,570,000 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.

0.25% of Takeda Pharmaceutical's shares are currently sold short. Here is how the short interest of companies in the industry of "pharmaceutical preparations" compare to Takeda Pharmaceutical: Novartis AG (0.20%), Merck & Co., Inc. (0.54%), Pfizer Inc. (0.00%), Abbott Laboratories (0.00%), AbbVie Inc. (0.00%), Eli Lilly and Company (0.87%), Novo Nordisk A/S (0.23%), Bristol-Myers Squibb (0.00%), Sanofi (0.00%), and CSL Limited (0.00%).

As of the most recent reporting period, the following stocks had the largest short interest positions: Charter Communications, Inc. ($5.18 billion), ViacomCBS Inc. ($4.71 billion), Analog Devices, Inc. ($4.45 billion), Aon Plc ($4.28 billion), Snap Inc. ($3.70 billion), Moderna, Inc. ($3.00 billion), The Clorox Company ($2.46 billion), Peloton Interactive, Inc. ($2.40 billion), The Kroger Co. ($2.38 billion), and Expedia Group, Inc. ($2.37 billion). View all of the most shorted stocks.

Short selling TAK is an investing strategy that aims to generate trading profit from Takeda Pharmaceutical as its price is falling. Takeda Pharmaceutical's stock is trading down $0.46 today. To short Takeda Pharmaceutical 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 Takeda Pharmaceutical 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 Takeda Pharmaceutical 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 TAK, 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 TAK, twice per month. The most recent reporting period available is December, 31 2020.