NEW YORK - Nasdaq has reported a slight decrease in short interest across its Global Market and Capital Market securities as of the settlement date of July 31, 2024. The total number of shares sold short in Nasdaq Global Market securities was 11,985,723,964, down from the 12,309,469,231 shares reported for the previous settlement date of July 15, 2024. This represents a short interest coverage of 2.90 days of average daily volume, slightly lower than the 2.95 days recorded in the prior period.
On The Nasdaq Capital Market, short interest stood at 2,082,532,251 shares, an increase from the 2,046,452,681 shares in the previous report. The average daily volume coverage for these securities was 1.29 days, down from 1.43 days in the prior reporting period.
Overall, short interest in all 4,735 Nasdaq securities totaled 14,068,256,215 shares at the end of July, compared to 14,355,921,912 shares among 4,731 issues at the end of the previous settlement date. The average daily volume for the combined markets came in at 2.44 days, a slight decrease from 2.56 days.
Short interest data is a useful tool for investors as it provides an indication of market sentiment towards certain stocks. A short sale involves selling a security that the seller does not own, typically borrowed, with the expectation that the price will decline, allowing the seller to buy it back at a lower price.
Nasdaq, a leading global technology company, provides a range of services to financial market participants, including data, analytics, software, and exchange capabilities. These services are designed to enhance liquidity, transparency, and integrity in the global economy. The company continues to support clients in optimizing and executing their business vision with confidence.
The reported figures reflect the total number of shares sold short by all broker/dealers, regardless of their exchange affiliations. For more information on Nasdaq short interest positions and publication dates, interested parties can visit Nasdaq's official website.
This news is based on a press release statement from Nasdaq.
In other recent news, Nasdaq and BlackRock (NYSE:BLK) have submitted a proposal to regulators seeking permission to offer options trading on BlackRock's ethereum exchange-traded funds (ETFs). This follows the approval by the U.S. Securities and Exchange Commission (SEC) for ETFs that track the price of ether from companies such as Franklin Templeton, VanEck, Bitwise, and 21Shares. In addition, Oppenheimer has maintained an Outperform rating on Nasdaq and raised the price target to $78.00 from $75.00, following a recent transaction by Thoma Bravo.
Thoma Bravo, a private equity firm and the top shareholder in Nasdaq, is set to sell 41.6 million of its shares through a secondary public offering, generating approximately $2.79 billion. Concurrently, Nasdaq has entered into a share repurchase agreement to buy back 1,200,000 shares of its common stock. Goldman Sachs (NYSE:GS) is serving as the sole book-running manager for both transactions.
Nasdaq reported a strong financial performance for the second quarter of 2024, with a 10% increase in net revenues to $1.2 billion and a 7% rise in annualized recurring revenue to $2.7 billion. Both the Financial Technology division and capital access platforms played significant roles in driving this revenue growth. These are among the latest developments for Nasdaq.
InvestingPro Insights
The latest data from Nasdaq (NDAQ) reflects interesting trends in market behavior, particularly in short interest. To complement this, InvestingPro provides real-time metrics and expert analysis that offer a deeper dive into the company's financial health and stock performance. As of the last twelve months leading into Q2 2024, Nasdaq has demonstrated a solid revenue growth of 7.57% with a substantial quarterly revenue growth of 25.05%, reflecting a robust financial performance. The company's gross profit margin stands at an impressive 66.0%, indicating efficient operations and cost management.
InvestingPro Tips highlight that Nasdaq has not only raised its dividend for 12 consecutive years but has also maintained these payments for 13 consecutive years, showcasing a strong commitment to shareholder returns. Additionally, analysts have revised their earnings upwards for the upcoming period, signaling potential optimism in the company’s future performance. Notably, the company has been trading at a high earnings multiple, with a P/E ratio of 39.36, which may suggest a premium market valuation compared to its earnings.
Investors looking for further insights will find additional InvestingPro Tips at https://www.investing.com/pro/NDAQ. There are currently 9 more tips available, which could provide valuable guidance for those interested in Nasdaq's stock, including its sales projections, profitability, and historical returns. With the company trading near its 52-week high and analysts predicting profitability for the year, these tips could be crucial for making informed investment decisions.
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