Bets against utility stocks decline in July; Evergy most shorted

[South Dakota Landscape]
Annie Otzen

Bets against Utilities Select Sector SPDR Fund ETF (NYSEARCA:XLU [https://seekingalpha.com/symbol/XLU]) declined in July compared to the end of June, with Evergy (EVRG [https://seekingalpha.com/symbol/EVRG]) being the most shorted stock in the sector and Eversource Energy (ES [https://seekingalpha.com/symbol/ES]) taking the spot for the least shorted.

Average short interest across S&P 500 utilities stocks was 2.57% of shares float at the end of July, down from 2.64% at the end of June.

The S&P 500’s Utilities Select Sector SPDR Fund ETF (NYSEARCA:XLU [https://seekingalpha.com/symbol/XLU]) was up 13.65% so far this year, outperforming the broader S&P500 market, which gained nearly 10% during the same period.

STOCKS WITH THE LEAST AND LARGEST SHORT POSITIONS

_Average short interest as a percentage of floating shares_
[Stocks with the least and largest short positions]
Seeking Alpha

Evergy (EVRG [https://seekingalpha.com/symbol/EVRG]) had 12.54 million shares sold short as of July 31, or 5.45% of shares float.

CenterPoint Energy (CNP [https://seekingalpha.com/symbol/CNP]) was the second-most shorted stock with short interest of 4.85%, followed by AES (AES [https://seekingalpha.com/symbol/AES]) with 4.44%, Pinnacle West Capital (PNW [https://seekingalpha.com/symbol/PNW]) with 4.42%, and American Electric Power (AEP [https://seekingalpha.com/symbol/AEP]) with 4.14%.

Eversource Energy (ES [https://seekingalpha.com/symbol/ES]) was the least shorted stock, with 5.49 million shares sold short, or 1.48% of the shares float, followed by DTE Energy (DTE [https://seekingalpha.com/symbol/DTE]) and Duke Energy (DUK [https://seekingalpha.com/symbol/DUK]), with short interest of 1.53% and 1.57%, respectively.

INDUSTRY ANALYSIS

_Average short interest as a percentage of floating shares_
_[Industry wise analysis of utilities sector ]_
Seeking Alpha

Independent Power & Renewable Electricity Producers was the most shorted industry within the sector, with 3.74% short interest as of July end, which slipped from 5.41% a month ago.

Gas Utilities stood at the second spot with 3.54% short interest as of the end of July, decreased from 3.66% at the end of June.

Multi utilities stocks took the third spot with 2.93% short interest as of July end, compared to 2.96% at the end of June.

Bets against the Electric Utilities sector as a whole have increased to 2.30% at the end of July, compared to 2.25% a month ago.

MORE ON THE UTILITIES SELECT SECTOR SPDR® FUND ETF

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* Higher CPI Inflation In June Encourages Focus On Margins [https://seekingalpha.com/article/4801587-higher-cpi-inflation-in-june-encourages-focus-on-margins]
* XLU: Break Out Alert [https://seekingalpha.com/article/4801325-xlu-break-out-alert]
* Overbought or Oversold? A sector-by-sector look at today’s market [https://seekingalpha.com/news/4484664-overbought-or-oversold-a-sector-by-sector-look-at-todays-market]
* The best sectors for tactical investors - BofA quant [https://seekingalpha.com/news/4483106-the-best-sectors-for-tactical-investors-bofa-quant]