Wall Street investors are doubting the financial trajectories of investor-owned utilities in the U.S.
Short interest in the utility sector — which includes electric, gas, and water companies, as well as independent power producers — has reached its highest level in eight years, according to market analysis from S&P Global. Short interest in electric utilities reached 3.3% in June compared to 3.1% a month prior.
Hawaiian Electric is the most shorted investor-owned utility at 28.8%, up from 27.9% in May. Despite the stock falling as a result of the devastating Maui wildfires, Hawaiian Electric is up 16% in the past month, partly due to news that the utility may be able to avoid bankruptcy.
The S&P 500 Utilities ETF is currently up 10% year-to-date despite persistent concerns from analysts over high interest rates. The fund trails the broader S&P 500, however, which is up 17% this year.
