What Is the Current Sentiment Surrounding Alexandria Real Estate Equities Inc?

Alexandria Real Estate Equities Inc: Recent Short Interest Trends

Alexandria Real Estate Equities Inc (NYSE: ARE) has experienced an 11% increase in short interest as a percentage of its float since the previous update. Current data shows that 6.94 million shares are being shorted, representing 5.45% of the company’s available shares for trading. Given the current trading volume, it would take an average of 1.84 days for traders to cover all short positions.

Understanding Short Interest

Short interest refers to the total number of shares that have been sold short and remain open. Short selling occurs when an investor sells shares they do not own, anticipating a decline in the stock’s price. If the price drops, the trader profits; if it rises, they incur losses.

Monitoring short interest is valuable because it reflects investor sentiment toward a stock. An uptick in short interest often suggests a more pessimistic outlook, while a decrease may indicate growing optimism among investors.

Short Interest Over the Past Three Months

The chart above illustrates that the proportion of Alexandria Real Estate Equities Inc shares sold short has increased since the last report. While this does not guarantee an imminent decline in the stock’s price, it is important for traders to note the rising level of shorted shares.

How Alexandria Real Estate Equities Inc Compares to Its Peers

Comparing a company’s short interest to that of similar firms is a common method used by analysts and investors to assess relative performance. Peers are typically companies with comparable industry focus, size, age, and financial structure. Peer groups can be identified through company filings or independent research.

According to Benzinga Pro, the average short interest as a percentage of float among Alexandria Real Estate Equities Inc’s peers is 7.59%. This indicates that Alexandria Real Estate Equities Inc has a lower short interest than most of its comparable companies.