Is the Market Bullish or Bearish on Enterprise Products Partners LP (EPD)?

Short interest has long served as a critical barometer of market sentiment, offering insights into the balance between bullish optimism and bearish pessimism. For Enterprise Products Partners LP (EPD), a midstream energy infrastructure giant, recent short interest data reveals a nuanced picture of investor positioning. By analyzing the latest short interest ratio, percentage changes, and comparisons to industry peers, we can assess whether the market is leaning toward a potential short squeeze or sustained bearish pressure-and what this means for EPD's future price action.

Rising Short Interest and Days to Cover

As of August 15, 2025, EPD's short interest stood at 30.33 million shares, . according to market data, signaling growing bearish sentiment. The short interest ratio, or days to cover, , meaning it would take short sellers 8 days to cover their positions at the average daily trading volume according to market analysis. This ratio, while elevated, falls within the "moderate to high" range (ratios above 5 often indicate significant pessimism).

By September 15, 2025, short interest had further climbed to 32.84 million shares (2.13% of float) according to investor reports, reflecting an additional 1.69 million shares sold short compared to mid-August. However, the short interest ratio dipped to 6.40 during this period according to market data, suggesting that while the absolute number of shorted shares increased, the average daily trading volume also expanded, potentially mitigating immediate short squeeze risks.

Historical Context and Institutional Activity

Historically, EPD's short interest has fluctuated. For instance, on July 31, 2025, short interest was 29.2 million shares, and by August 15, it had risen by 1.1 million shares according to market data. This trend aligns with broader market concerns about midstream energy valuations amid macroeconomic uncertainties, such as interest rate volatility and subdued demand growth. Institutional investors, including Nomura Holdings Inc. and Group One Trading LLC, have also reported short positions in EPD, underscoring professional skepticism about the stock's near-term trajectory.

Industry Comparisons and Relative Sentiment

EPD's short interest percentage of 2.11% (as of August 2025) places it above key industry peers. For example, Kinder Morgan, Inc. (KMI) had a short interest of 1.83%, while Energy Transfer LP (ET) reported just 0.78% according to market data. This disparity highlights relatively stronger bearish sentiment toward EPD compared to its rivals. However, according to market analysis.

Implications for Price Action: Short Squeeze or Sustained Pressure?

The interplay between short interest and price action hinges on two key factors: the short interest ratio and broader market conditions. , as short sellers scramble to cover positions. However, , assuming trading volume remains stable.

That said, the persistent rise in short interest-from 29.2 million to 32.84 million shares over six weeks-points to ongoing bearish conviction. If EPD's fundamentals deteriorate (e.g., declining cash flows, regulatory headwinds, or sector-wide margin pressures), short sellers may feel emboldened to maintain or expand their positions, prolonging downward pressure. Conversely, a rebound in earnings or sector sentiment could trigger a self-reinforcing rally as short sellers rush to exit.

Conclusion: A Mixed Signal for Investors

The data paints a mixed picture for EPD. On one hand, , particularly relative to peers. On the other, , above 10%) imply that a full-blown short squeeze is not yet imminent. Investors should monitor EPD's upcoming earnings reports, sector-specific catalysts (e.g., infrastructure spending bills), and macroeconomic trends to gauge whether the bears are being vindicated or if a reversal is on the horizon.

In the short term, the market appears cautiously bearish on EPD, but the path forward will depend on whether fundamentals align with-or diverge from-short sellers' expectations.