Oracle Corp (ORCL US) reports its fiscal third quarter earnings today and shorts are covering some of their exposure ahead of the announcement.
ORCL short interest is $2.58 billion; 48.65 million shares shorted; 1.99% of float; stock borrow at 0.30% fee. ORCL is the second largest short in the Systems Software sector behind Microsoft Corp (MSFT US) with $4.99 billion in short interest.
ORCL shares shorted had been climbing for the first six weeks of 2019, increasing by 10.4 million shares, +24%, to 54.5 million shares before reversing course and decreasing by 5.9 million shares, -11% over the last month.
Although there had been a bump up in short selling earlier in the week, we are seeing a scramble of short covering yesterday and today with over 2 million shares covered over these past two days.
While quarterly revenues declined in their 2nd quarter results, share buybacks continue to juice EPS â€¦ Â it looks like shorts are preparing for either an earnings surprise on the upside or a continued stock buybacks in the 3rd quarter results.
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