For investors following Meliá Hotels International, S.A. (OTCMKTS:SMIZF), recent financial data points to a significant shift in market sentiment. The company saw a dramatic reduction in its short interest during February, a development that often signals diminishing bearish bets against the stock.
Specifically, as of February 13th, the total short interest in SMIZF shares registered at a notably low 325 shares. This figure represents a staggering 81.2% drop from the 1,733 shares recorded just a couple of weeks earlier, on January 29th.
A sharp decline in short interest typically suggests that fewer traders are betting on a stock’s price to fall, potentially indicating increased confidence or a belief that the stock may be undervalued. For Meliá Hotels International, this could be interpreted as a positive indicator for its near-term outlook.
Given an average daily trading volume of 5,995 shares, this substantial reduction in short positions would also significantly impact the short-interest ratio, implying that it would take far less time for short sellers to cover their positions.
Source: Original Article
