Most shorted UK stocks: Ocado, Boohoo, Moonpig, Kingfisher

UK stocks have underperformed their European and American peers this year. The FTSE 100 index has risen by just 1% this year while the Nasdaq 100 and S&P 500 indices have jumped by double-digits this year. In Europe, the German DAX and French CAC 40 indices are hovering near their all-time high. Here are some of the most shorted UK stocks this year.

Ocado Group

Ocado Group (LON: OCDO) is a leading UK company that provides e-commerce solutions. In the UK, the company has a joint venture with Marks and Spencer. It also provides solutions to other retailers like Casino and Kellog among others.

Ocado Group has a short interest of about 6.58%, making it one of the most shorted companies in the UK. It is clear to see why investors are afraid about Ocado. As I wrote here, Ocado Group has struggled to become profitable after losing billions of dollars in the past decade. 

Ocado Solutions has also struggled to attract more retailers in the past few months. The company’s stock has dropped by more than 85% from its highest level during the pandemic.

Boohoo 

Boohoo (LON: BOO) is a leading company that provides fast-fashion services in the UK. The company has a short interest of about 5%. There are reasons why investors are pessimistic about the company. First, the company has seen its growth slow in the past few months after it saw robust performance during the pandemic.

Second, Boohoo stock has struggled as it faces substantial competition from the likes of Shein. Further, the company has faced regulatory concerns. Most importantly, the firm has also moved from being a profitable company to a loss-making entity.

Moonpig Group

Moonpig Group (LON: MOON) is a company that owns firms like Moonpig, Greetz, Red Letter Days, and Buyagift. A closer look shows that the Moonpig share price has plunged by over 70% from an all-time high. The company has a short interest of about 4%. 

The most recent results showed that Moonpig’s revenue for the six months to October last year came in at £142 million. Its gross profit jumped to £77.2 million while its profit before taxes dropped to £9.1 million.

Investors are afraid about the company’s future after the management warned that business conditions had become progressively more challenging. It then downgraded its FY revenue forecast to over £320 million.

Kingfisher

Kingfisher (LON: KGF) share price has crashed by more than 30% from the highest point in 2021. The company, which owns Castorama, Screwfix, and B&Q, has a short interest of about 5.2%. Investors are concerned about the company’s demand as the cost of living crisis continues. 

The company’s recent results showed that its revenue dropped sharply in the first quarter. It blamed the performance to the unusually poor weather and strokes in France.