Bank of America saw a big surge in short interest in the second half of September, according to New Short Stock Exchange data released late Monday and published by Reuters.
Short interest outstanding of Bank of America jumped to 153 million shares from 128 million during the first half of the month.
The 19.9 percent increase was the fourth-largest among NYSE stocks, behind Chimera Investment , Cincinnati Bell and Nokia , according to Reuters.
Short sellers borrow shares in the hope of buying them at a lower price in the future and pocketing the difference. Short interest reflects the amount of shares being borrowed by short-sellers, and is one way of measuring bearish sentiment on a stock.
Bank of America is also the third largest short position on the NYSE, behind Citigroup and Ford Motor .
Bank of America, which has been one of the weaker performers among large financial stocks since it released second quarter earnings in July, has grabbed headlines lately due to a decision, announced Friday, to halt foreclosures throughout the U.S. pending a review of its business practices.
More on Financials:
- Wells Fargo Has Begun Foreclosure Review: Report
- How Would US Liquidate Banks? FDIC Proposes Rule
- Expect Bank Earnings to Be Lower This Quarter: Dick Bove
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