A look into Okta’s recent short interest

Okta (NYSE:OKTA) stock’s short interest is down 5.83% since its last report. The company recently announced that it does 4.91 million shares sold short, representing 3.07% of all common shares available for trade. Based on trading volume, It would take investors an average of 3.17 days to cover short positions.

Why short interest matters

Short interest is the number of shares that have been sold short but have not yet been covered or closed. Short selling occurs when a trader sells shares of a company he does not own with the hope that the price will fall. Traders make money by short selling if the stock price falls and lose if it rises.

Tracking short interest is important because it can serve as an indicator of market sentiment towards particular stocks. An increase in short interest may signal that investors have become more bearish, while a decrease in short interest may signal that they have become more bullish.

See also: List of the most shorted stocks

Okta Short Term Position Chart (3 Months)

As you can see in the chart above, the percentage of shares sold short by Okta has declined since the last report. This doesn’t mean the stock will rise in the near future, but investors should be aware that fewer stocks are being shorted.

Compare Okta’s short-term interest to its competitors

Peer comparison is a popular technique among analysts and investors to evaluate a company’s performance. A peer is another company that has similar characteristics to the company, such as industry, size, age, and financial structure. You can find a company’s peer group by reading its 10-K, proxy filing, or conducting your own similarity analysis.

According to Benzinga Pro, Okta’s peer group average short interest as a percentage of shares float is 6.57%, meaning the company less short interest than most of her peers.

Did you know that you can actually increase short interest bullish for shares? This post by Benzinga Money explains how you can benefit from it.

This story was generated by Benzinga’s automated content engine and has been reviewed by an editor.