S&P 1500 Most Heavily Shorted Stocks

by: Bespoke Investment Group

The major US exchanges released their latest short interest data after the close yesterday, so below we have updated our list of the most heavily shorted stocks in the S&P 1500 (based on percentage of float sold short). The table below lists the 31 stocks in the S&P 1500 that have more than 25% of their free-floating shares sold short.

Topping the list as of the end of August were shares of Ebix (NASDAQ:EBIX), Rubicon Technology (NASDAQ:RBCN) and Liquidity Services (NASDAQ:LQDT). All three of these small cap stocks have more than 40% of their float sold short. Within the large cap space, Cliffs Natural (NYSE:CLF) has the highest short interest as a percentage of float, while Deckers Outdoor (NASDAQ:DECK) is the most heavily shorted mid cap stock. In terms of market cap breakdown, nearly two-thirds of the stocks on the list are small caps (20), eight are mid caps and just three are large cap stocks.

Over the last several weeks, we have made several references to the fact that heavily shorted stocks have been outperforming the broader market. The table below provides another illustration of this trend. From the middle of August (date of prior release of short interest data) through today, the average performance of the 31 stocks on the list below is a gain of 3.19%, which is more than twice the return of the S&P 500.