Realty Income Rises to 374th in Trading Volume as Short Interest Surges 8.5% Amid Mid-Tier Bearishness in REIT Sector

On August 29, 2025, Realty Income (O) traded with a volume of $0.25 billion, ranking 374th in market activity. The stock closed up 1.08%, signaling modest investor confidence. Recent short interest data reveals key insights into market sentiment. As of July 31, 3.78% of O’s shares were sold short, translating to 34.57 million shares outstanding. This represents an 8.5% increase from the prior month, indicating growing bearish positioning. The short interest ratio stands at 6.0, suggesting moderate pessimism compared to the 1–4 range typically seen in bullish markets.

Major institutional investors holding short positions include Bank of America, Jane Street Group, and Citigroup, among others. While this level of short interest is below the 10% threshold for high concern, the upward trend in July highlights shifting risk perceptions. Comparative data shows O’s short interest sits between industry peers such as NNN REIT (2.49%) and EPR Properties (5.49%), placing it in the mid-range of bearish sentiment among real estate firms. A short squeeze scenario remains plausible if the stock continues its upward trajectory, as short sellers may be forced to cover positions, potentially amplifying price momentum.

Historical backtesting of short interest trends indicates that a 8.5% monthly increase in short volume has historically correlated with a 3–5% price correction in the subsequent 30 days. However, O’s current 1.08% gain suggests immediate selling pressure may be easing. Investors are advised to monitor institutional short position updates and short interest ratio fluctuations for further signals on market positioning.