Most Shorted Stocks on Borsa Italiana: Latest PNC Ranking

According to a Consob report analyzed by Investing.com, the most shorted stock on Borsa Italiana currently holds 13 net short positions (PNC), representing 13.48% of its capital. This data tracks short selling activity on Piazza Affari, identifying the companies with the highest concentration of bearish bets.

How are short positions ranked on Borsa Italiana?

The latest Consob update identifies five companies with the highest net short positions. The top-ranked stock has 13 PNCs covering 13.48% of its capital. The second-place company holds 6 PNCs at 10.29% of its capital.

The third-ranked company has 4 PNCs representing 7.82% of capital. Following them, the fourth and fifth positions both hold 5 PNCs, accounting for 5.71% and 4.38% of their respective capitals.

Did You Know? Consob only publishes PNC data when positions reach or exceed 0.5% of a listed company’s share capital.

What defines Net Short Positions (PNC)?

PNCs are synthetic indicators that summarize short positions minus long positions. According to the report, short positions include short sales of shares and short positions in financial derivatives or similar instruments. Long positions include share purchases and long positions in derivatives.

The calculation includes all transactions in these instruments, even those executed off-market or abroad. However, the report excludes financial instruments referencing shares not yet issued, such as certain warrants, convertible bonds, and option rights.

Expert Insight: Samantha Carter notes that because PNCs subtract long positions from short ones, these figures provide a net view of market sentiment. A high PNC percentage suggests a concentrated belief among certain investors that the stock price may decline.

When are PNCs required to be published?

Publication is mandatory for PNCs equal to or greater than 0.5% of a listed company’s share capital. If a position previously met this 0.5% threshold but subsequently dropped below it, Consob publishes the value one final time.

What could these short positions imply for the market?

High net short positions may indicate that a significant portion of the capital is betting against these specific stocks. This sentiment could lead to increased volatility if these positions are maintained.

A possible next step would be a “short squeeze” if the stock prices rise, which may force short sellers to buy back shares to cover their positions. Conversely, if the bearish outlook is realized, these stocks could see further downward pressure.

Frequently Asked Questions

What is included in the calculation of PNCs?
PNCs include short sales of shares and short positions in financial derivatives, minus long positions in shares and derivatives, including those executed abroad or off-market.

What is excluded from the PNC report?
Financial instruments referencing shares that have not yet been issued, such as some warrants, convertible bonds, and option rights, are not included.

At what threshold must a PNC be published?
PNCs must be published if they are equal to or greater than 0.5% of the listed company’s share capital.

Do you believe high short interest is a reliable indicator of a stock’s future performance?