Every investor wants to know what stocks are picking up momentum and whose share price is likely to rise. This occurs when a stock is experiencing a rally. A rally results from an influx of money into the market directed towards a particular stock, which in turn bids up the price of those shares.
Another sign that an asset is likely to experience an increase in value is if investors are covering their shorts. When an investor thinks a stock price is bound to decrease, he shorts that stock. But if the tide turns and this looks like this is not going to occur, in order to avoid losing money on that short the investor must cover it.
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We’ve compiled a list of stocks currently displaying a rally and a high volume of short covers. In addition, the stocks are trading at higher than average trading volume, signifying more investors are “agreeing” with the direction of the stock price.
The presence of a rally is evident in the short run moving average exceeding the long run moving average, and the short covers are apparent by a significant number of investors who had previously bet on the stock pulling back from that bet.
The combination of these two factors suggests the share prices of these stocks are likely to keep rising in the immediate future. What do you think?
Interactive Chart: Use the Compar-O-Matic to compare market caps for the stocks mentioned below:
1. AmTrust Financial Services, Inc. (AFSI, Earnings, Analysts, Financials): Operates as a multinational specialty property and casualty insurance company in the United States and internationally. Market cap at $1.83B, most recent closing price at $30.25. The stock is currently trading 5.18% above its 20-day moving average, 9.51% above its 50-day moving average, and 19.01% above its 200-day moving average. Shares shorted have decreased from 4.19M to 3.84M over the last month, a decrease which represents about 1.15% of the company’s float of 30.50M shares. Days to cover ratio at 14.84 days.
2. Cirrus Logic Inc. (CRUS, Earnings, Analysts, Financials): Develops high-precision analog and mixed-signal integrated circuits (ICs). Market cap at $1.82B, most recent closing price at $28.39. The stock is currently trading 4.09% above its 20-day moving average, 10.59% above its 50-day moving average, and 40.77% above its 200-day moving average. Shares shorted have decreased from 11.21M to 9.60M over the last month, a decrease which represents about 2.51% of the company’s float of 64.08M shares. Days to cover ratio at 3.88 days.
3. DreamWorks Animation SKG Inc. (DWA, Earnings, Analysts, Financials): Engages in the development, production, and exploitation of animated feature films and characters worldwide. Market cap at $1.51B, most recent closing price at $18.02. The stock is currently trading 3.62% above its 20-day moving average, 3.42% above its 50-day moving average, and 0.33% above its 200-day moving average. Shares shorted have decreased from 19.88M to 18.68M over the last month, a decrease which represents about 1.82% of the company’s float of 65.93M shares. Days to cover ratio at 25.58 days.
4. Brinker International Inc. (EAT, Earnings, Analysts, Financials): Develops, operates, and franchises various restaurant brands primarily in the United States. Market cap at $2.38B, most recent closing price at $31.53. The stock is currently trading 0.44% above its 20-day moving average, 4.68% above its 50-day moving average, and 22.14% above its 200-day moving average. Shares shorted have decreased from 9.38M to 8.27M over the last month, a decrease which represents about 1.49% of the company’s float of 74.49M shares. Days to cover ratio at 4.99 days.
5. Echo Global Logistics, Inc. (ECHO, Earnings, Analysts, Financials): Provides technology enabled transportation and supply chain management services in the United States. Market cap at $400.86M, most recent closing price at $17.62. The stock is currently trading 4.87% above its 20-day moving average, 6.85% above its 50-day moving average, and 11.97% above its 200-day moving average. Shares shorted have decreased from 1.59M to 1.46M over the last month, a decrease which represents about 1.04% of the company’s float of 12.45M shares. Days to cover ratio at 19.3 days.
6. Generac Holdings Inc. (GNRC, Earnings, Analysts, Financials): Market cap at $1.71B, most recent closing price at $25.22. The stock is currently trading 0.14% above its 20-day moving average, 4.18% above its 50-day moving average, and 5.28% above its 200-day moving average. Shares shorted have decreased from 1.45M to 1.06M over the last month, a decrease which represents about 1.53% of the company’s float of 25.45M shares. Days to cover ratio at 4.02 days.
7. Iron Mountain Inc. (IRM, Earnings, Analysts, Financials): Provides information management and related services for various media in North America, Europe, Latin America, and the Asia Pacific. Market cap at $5.53B, most recent closing price at $32.32. The stock is currently trading 9.12% above its 20-day moving average, 8.38% above its 50-day moving average, and 6.35% above its 200-day moving average. Shares shorted have decreased from 12.98M to 11.33M over the last month, a decrease which represents about 1.09% of the company’s float of 151.35M shares. Days to cover ratio at 5.82 days.
8. Select Medical Holdings Corporation (SEM, Earnings, Analysts, Financials): Through its subsidiary, Select Medical Corporation, operates specialty hospitals and outpatient rehabilitation clinics in the United States. Market cap at $1.32B, most recent closing price at $9.34. The stock is currently trading 5.05% above its 20-day moving average, 13.57% above its 50-day moving average, and 18.14% above its 200-day moving average. Shares shorted have decreased from 3.56M to 3.13M over the last month, a decrease which represents about 1.28% of the company’s float of 33.72M shares. Days to cover ratio at 7.22 days.
9. CVR Partners, LP (UAN, Earnings, Analysts, Financials): Engages in the production of nitrogen fertilizers including ammonia and urea ammonium nitrate. Market cap at $1.52B, most recent closing price at $20.86.fxgc Shares shorted have decreased from 1.23M to 720.60K over the last month, a decrease which represents about 2.35% of the company’s float of 21.72M shares. Days to cover ratio at 2.18 days.
10. Mitek Systems Inc. (MITK, Earnings, Analysts, Financials): Develops, sells, and services software solutions related to mobile imaging applications and intelligent recognition software in the United Stats and Internationally. Market cap at $60.55M, most recent closing price at $2.37.fxgc Shares shorted have decreased from 6.13M to 4.61M over the last month, a decrease which represents about 7.36% of the company’s float of 20.65M shares. Days to cover ratio at 3.83 days.
Written by Dan Connelly
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Dig Deeper: Access Company Snapshots, Charts, Filings
- AmTrust Financial Services, Inc. (AFSI, Chart, Download SEC Filings)
- Cirrus Logic Inc. (CRUS, Chart, Download SEC Filings)
- DreamWorks Animation SKG Inc. (DWA, Chart, Download SEC Filings)
- Brinker International Inc. (EAT, Chart, Download SEC Filings)
- Echo Global Logistics, Inc. (ECHO, Chart, Download SEC Filings)
- Generac Holdings Inc. (GNRC, Chart, Download SEC Filings)
- Iron Mountain Inc. (IRM, Chart, Download SEC Filings)
- Select Medical Holdings Corporation (SEM, Chart, Download SEC Filings)
- CVR Partners, LP (UAN, Chart, Download SEC Filings)
- Mitek Systems Inc. (MITK, Chart, Download SEC Filings)
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High Quality work..lots of inspiration here.Thanks for sharing!