Toronto Dominion Bank (NYSE:TD) (TSE:TD) recorded a significant decline in short interest during May, marking a notable shift in market sentiment toward the stock.
As of May 15th, short interest in the bank totaled 4,127,228 shares, reflecting a sharp drop from the prior reporting period.
That figure represents a decrease of 57.7% compared to the April 30th total of 9,747,325 shares held short by investors.
The dramatic reduction in short positions suggests that bearish sentiment surrounding Toronto Dominion Bank has eased considerably in recent weeks.
Based on an average daily trading volume of 1,339,140 shares, the short-interest ratio currently stands at 3.1 days.
The short-interest ratio, sometimes called the days-to-cover ratio, measures how long it would take short sellers to exit their positions at the average daily volume.
At present, short sold shares account for just 0.2% of the total outstanding shares of the stock, a relatively modest figure.
The steep decline in short interest from nearly 9.75 million shares to just over 4.1 million shares occurred over a two-week period spanning late April through mid-May.
Such a rapid unwinding of short positions can reflect changing investor outlooks, covering activity ahead of earnings, or broader shifts in how the market views a particular stock.
Toronto Dominion Bank trades on both the New York Stock Exchange under the ticker TD and on the Toronto Stock Exchange, also under the ticker TD, giving it a broad cross-market investor base.