If you ever want to know how the market feels about a particular company, the stock's short interest movement can often serve as your best gauge. Short interest offers a sense of how pessimistic, or bearish, investors are about a company over a certain time period.

In the case of Bank of America Corporation (BAC), the short sellers continue to flee the name. The Charlotte, N.C.-based bank, which saw its short interest position decline 22% two weeks ago, witnessed an additional short interest decline of almost 1% in the most recent settlement period, which ended Jan. 25. (See also: Big US Banks Optimistic About the Future Under Trump.)

Bank of America now has 107.4 million shares sold short, according to data compiled by the Wall Street Journal. Indeed, that figure is quite massive compared with other stocks, but it's also down from 138.4 million shares a month ago. More impressively, it marks a 28.6% decline from the 150 million of the bank's shares that were sold short in November.

Investors, or in this case short sellers, who believe that the price of a stock will fall can seek to profit from the decline by betting money on that belief. They can borrow the shares, hoping to sell them once the share price falls or before they have to purchase or replace the shares. That collective belief is then measured and calculated in the short interest total, which is reported bi-weekly. (See also: Short Selling Tutorial.)

In the case of Bank of America, its shares are still trading at eight-year highs, meaning the short sellers have bet incorrectly. Bank of America stock closed Friday at $23.36, netting a new 52-week high last week at $23.55. The shares have risen 5.7% year to date, compared with a 2.5% rise in the S&P 500 index (SPX).

Earlier this month, the bank reported better-than-expected fourth quarter results, logging its third straight earnings beat. In the three months that ended December, Bank of America posted a net income of $4.34 billion, or earnings per share of 40 cents, marking a 48% jump year over year and beating consensus estimates by 2 cents. (See also: The Party for Bank Stocks May Be Over.)

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