Here are the 10 most shorted LSE shares

We run over the most shorted LSE shares at the moment, ranging from FTSE 100 titans to smaller AIM-listed companies.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Asian man looking concerned while studying paperwork at his desk in an office

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Shorting a stock refers to the process where an investor borrows a stock and sells it, with the aim of buying it back at a lower price. It’s a transaction that will be profitable if the share price falls. The net short position refers to the sum of all the individual shorts of the particular stock. An investor might have this focus based on the potential for poor earnings or as protection against a falling market. Here are the current most shorted London Stock Exchange (LSE) shares to take note of.

The list in full

  • ITM Power (LSE:ITM) has a net short position of 4.57% (that percentage of its free-floated shares are shorted). This makes it the most shorted stock on the list. Despite a lot of optimism around renewable energy stocks, the share price has dropped by 54% over the past year. Part of this is associated with the accounting problems it’s experiencing.
  • Kingfisher (LSE:KGF) is second on 4.49%. After the pandemic boom, financials have been tapering off for the FTSE 100 member. The 2022 full-year results showed a 39.3% fall in statutory pre-tax profit versus the previous year.
  • Keywords Studios (LSE:KWS). The AIM-listed stock provides technical and creative services for clients. The decline in the share price this year comes partly from concerns around the impact of artificial intelligence (AI) on the company. The net short position is currently 4.13%.
  • Naked Wines (LSE:WINE) has a net short position of 3.63%. The overhaul and cost-cutting drive announced in Q4 of last year is under way, but short-term pain is hampering the share price so far this year.
  • Hargreaves Lansdown (LSE:HL) is a retail investing platform based in the UK. It has lost ground recently as other players have tried to push into its wealth management sector. The net short position is 3.46%.
  • Dg Innovate (LSE:DGI) has seen the share price collapse in the past year. The company now trades as a penny stock with a market cap of just £5.12m. It announced plans to reorganise capital and fundraise last month. The net short position is 3.4%.
  • Hammerson (LSE:HMSO) is listed on the FTSE 250. The property developer has a net short position of 3.34%. The cyclical nature of the property market means that it usually struggles during a down period such as the UK economy is currently in.
  • Cineworld Group (LSE:CINE) has a net short position of 3.29%. The problems of the pandemic have been well documented, with lingering doubts about the future of the company. This is reflected in the amount of short interest.
  • boohoo group (LSE:BOO) is a fast fashion online retailer. Over the past couple of years it has been hit by scandals, high cost inflation and thin profit margins. These factors and more are why the net short position stands at 3.26%.
  • Sainsbury J (LSE:SBRY) rounds off the top 10 with a net short position of 3.24%. Record high grocery inflation has negatively impacted the business, but the 27% jump in the stock over the past year means short sellers need to be careful.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Jon Smith has no position in any of the shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown Plc and J Sainsbury Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing For Beginners

Investing Articles

If I put £20k into a FTSE 100 tracker fund, I’d get this as a second income

A lot of UK investors have money in Footsie trackers. Here, Ben McPoland explores how big a second income he…

Read more »

Investing Articles

History suggests these UK shares might soar if interest rates are cut in August

Some UK shares could rocket if interest rates fall from its 5.25% high next month. And there's one our writer…

Read more »

Investing For Beginners

2 boring but beautiful FTSE 100 stocks to add to my ISA

Jon Smith runs over a couple of FTSE 100 stocks that he really likes the look of, even though they…

Read more »

Investing For Beginners

2 things I think investors have missed regarding the Burberry share price

Jon Smith talks through the fall in the Burberry share price but explains why he feels the need to take…

Read more »

Investing Articles

What would I do if Rolls-Royce shares plunged 50%? History suggests a big decline is coming

While Rolls-Royce shares have delivered massive outperformance in recent years, they also have a history of significant declines.

Read more »

British union jack flag and Parliament house at city of Westminster in the background
Investing Articles

2 of the widest moats in the FTSE 100

A durable competitive advantage is key to a good investment. And Stephen Wright thinks a couple of FTSE 100 firms…

Read more »

Investing Articles

Will the 5.6% BT Group dividend yield grow in 2024?

Zaven Boyrazian explores whether BT Group can continue hiking its dividend and if the telecoms giant belongs in his income…

Read more »

Investing Articles

FTSE 100’s near a 52-week high, but this stock’s still dirt cheap!

The FTSE 100's on the rise, but not all stocks have been so fortunate. Here’s one company that got left…

Read more »