Top 10 most shorted FTSE stocks in February 2022

Highlights 

• Short selling is now a day widely followed trading strategy across the globe.
• Market participants look to take advantage of negative sentiments created around a particular company due to various factors.

Short selling is now a day widely followed trading strategy across the globe. Market participants take advantage of negative sentiments created around a particular company due to various factors like poor results and other external factors, leading to a decline in stock price and later use the market condition to benefit from that.

© 2022 Kalkine Media®

Let us look at top 10 FTSE listed stocks that market participants are currently short on:

1.      Cineworld Group Plc (LON: CINE)

The cinema chain operator, which has operations in the US and UK, is the favourite stock amongst short sellers. The company recently lost litigation against Cineplex and was asked by the Ontario Superior Court of Justice to pay C$1.23 billion in damage to Cineplex for the termination proposed acquisition. The litigation charges will put an additional burden on the company’s balance sheet as the business continues to show slow recovery after the Covid-19 pandemic.

Cineworld Group Plc’s current market cap stands at £538.7 million as of 1 February 2022. At present, around 8.33% of the company’s shares are in a short-sell position.

2.      Petropavlovsk Plc (LON: POG)

The precious metal & mining company has gold mining projects across Russia. The company reported total gold production of 143.1koz, a rise of 26% in the fourth quarter of 2021. However, its total yearly gold production has declined compared to the previous year. The stable gold prices in the international market and less business diversification are some of the reasons for stock being shorted by market participants.

Petropavlovsk Plc’s current market cap stands at £592.40 million as of 1 February 2022. At present, around 6.06% of the company’s shares are in a short-sell position.

3.      Hammerson Plc (LON: HMSO)

FTSE250 listed company operates and manages retail outlets across different locations. The gross rental income across managed portfolios recovered steadily in 2021. The company expects its FY21 adjusted earnings to be positive and in the range of £75 to 80 million, driven by higher footfall in retail stores after an ease in restrictions and the reopening of shops. The pandemic restrictions and close down of shops have adversely impacted the company’s business leading to a short position in the stock.

Hammerson Plc’s current market cap stands at £1,710 million as of 1 February 2022. At present, around 5.82% of the company’s shares are in a short-sell position.

4.      AO World Plc (LON: AO.)

The electronic retail company has operations across different European countries. It sells home appliances and other electronic gadgets. The company’s stock has given negative returns to its shareholders in the last one year following the below-par business performance. The rising competition in the online marketplace, supply chain constraints, and changes in the local trading environment continue to impact sales and revenue.

AO World Plc’s current market cap stands at £482.40 million as of 1 February 2022. At present, around 5.09% of the company’s shares are out on loan to short sellers.

5.      Naked Wines Plc (LON: WINE)

FTSE AIM-listed company is engaged in retailing and distribution of wines and other alcoholic beverages in the UK and other countries. The company reported a 6% growth in total sales on a constant currency basis for the 26 weeks ended 27 September 2021. The reopening of bars and restaurants after an ease in restriction has adversely impacted the company’s online-only business model. Wine drinkers are moving towards in-person experiences offered by bars and restaurants.

Naked Wines Plc’s current market cap stands at £382.62 million as of 1 February 2022. At present, around 4.63% of the company’s shares are in a short-sell position.

6.      Network International Holdings Plc (LON: NETW)

The technology-enabled payment processing company has operations in different countries. It reported significant improvement in business performance in FY21, resulting in a 21% growth in revenue at USD 351 million.  

Network International Holdings Plc’s current market cap stands at £1,474 million as of 1 February 2022. At present, around 4.44% of the company’s shares are out on loan to short-sellers.

7.      Boohoo Group Plc (LON: BOO)

The company operates an online fashion website in the UK. It reported quarterly sales growth of 10% to £506.2 million for the three months to 30 November 2021. The company has reduced its full-year net sales growth target to 12% amid rising cases of Omicron variant, supply chain bottlenecks and Brexit. As a result, the company’s stock witnessed selling pressure from investors. The share price has been down by over 15% since the start of 2022.

Boohoo Group Plc’s current market cap stands at £1,351 million as of 1 February 2022. At present, around 4.18% of the company’s shares are out on loan to short sellers.

8.      Currys Plc (LON:CURY)

The company retails electrical products and mobiles in the UK and other countries. It provides its services under various brand names. It reported a decline in sales in 10 weeks to 8 January 2022. The overall group sales declined by 3%, leading to selloff from investors. The stock price is down by over 9% since the start of the year.

Currys Plc’s current market cap stands at £1,233 million as of 1 February 2022. At present, around 4.13% of the company’s shares are out on loan to short-sellers.

9.      Alphawave IP Group Plc (LON: AWE)

The company designs and sales the connectivity and integrated products in the UK and North America market. The company recently announced the acquisition of Precise-ITC, an emerging Ethernet and Optical Transport Network company. The stock has been on short-sellers’ radar despite reporting good performance. Its total bookings for FY21 increased by 225% to USD 244.7 million.

Alphawave IP Group Plc’s current market cap stands at £1,073 million as of 1 February 2022. At present, around 4.11% of the company’s shares are in a short-sell position.

10. Domino's Pizza Group Plc (LON: DOM)

The leading pizza delivery chain has operations in the UK and Ireland. In December 2021, the company finally reached a resolution with its franchisees and resolved all issues impacting the company’s business. The new resolution, like a capital investment of £20 million over the three years to accelerate growth through e-commerce app and other in-store development, will help in long term business growth.

Domino's Pizza Group Plc’s current market cap stands at £1,733 million as of 1 February 2022. At present, around 4.08% of the company’s shares are out on loan to short-sellers.