Short bets against S&P 500 healthcare stock rises in Feb; MRNA stays top shorted

Short sellers increased their bets against the broader healthcare sector in February vs. January, and Moderna remained the most shorted stock of the month.

The average short interest for S&P 500 Health Care Index Sector (XLV) came at 1.79%, higher than 1.58% recorded last month.

The S&P 500’s healthcare sector (NYSEARCA:XLV), which has a 12.12% weightage in the broader S&P 500 index, rose 4.55% so far this year, compared to a 6.12% decline in the broader benchmark index. 

Stocks with the largest and least short positions

Ranked by short interest as a percentage of shares float

Moderna (NASDAQ:MRNA)—most shorted—saw short interest rose to 13.19% from 11.84% in January. Looking at Seeking Alpha's Quant Ratings, the biotechnology company focused on developing messenger RNA ((mRNA)) therapeutics and vaccines has a Strong Sell rating with a score of 1.17 out of 5.

The COVID vaccine maker (NASDAQ:MRNA) reported revenue of $966 million for the final quarter of 2024, down 65% year-over-year, and reported a wider loss than expected for the fourth quarter. The drugmaker's sales forecast for 2025 also came in below estimates. "In 2025, we remain focused on driving sales, delivering up to 10 product approvals through 2027, and expanding cost efficiencies across our business," said CEO Stéphane Bancel.

ResMed (NYSE:RMD) came in second with a short interest of 5.99%, followed by DaVita (NYSE:DVA) with a short interest of 5.97%.

Eli Lilly (NYSE:LLY) was the least shorted stock in February, with a short interest of 0.85%, followed by Boston Scientific (NYSE:BSX) which came in a close second with a short percentage of 0.88%. Unitedhealth Group (NYSE:UNH) was the third least shorted company in February, with a short percentage of 0.95%.

Industry Analysis

Average short interest as a percentage of floating shares

Biotechnology was the most shorted industry in the healthcare index in February for the eleventh time in a row. Short interest in this sub-sector rose to 2.63% from 2.34% in January. Healthcare provider and services sector was in the second position with short interest at 1.91% in February end. Pharmaceuticals had the lowest short interest in the month of February, with a short percentage of 1.52%.

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