Morningstar

The 25 Most-Shorted UK Stocks Right Now

The latest update on FTSE stocks that professional investors are betting against.

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Key Takeaways

  • Ibstock, Wizz Air, and Vistry top the list of the UK’s most-shorted stocks.
  • Housebuilders and airliners, affected by the Iran war selloff, feature as short sellers’ target sectors.
  • Despite shares rising over 130% in 2026, Ceres Power and ITM Power both make the list.

Airliners and housebuilder stocks feature prominently on April’s list of UK short positions as hedge funds bet against the sectors most affected by the Iran war.

Shorting is a strategy often used by professional investors, such as hedge funds and asset managers, to profit from a company’s falling share price.

FTSE 250 brickmaker Ibstock IBST is the most-shorted stock in the past 30 days, with 10.84% of its shares shorted, according to Financial Conduct Authority data.

The largest bet against the firm is held by J.P. Morgan Asset Management (UK), which holds a 2.65% net short position, followed by Acadian Asset Management and Citadel Advisors.

In its full-year results in March, Ibstock warned of a challenging start to 2026. Shares are down 25% for the year, with demand suffering as a result of higher interest rate expectations, which has hit sentiment towards housebuilders, which buy Ibstock products.

The 25 Most-Shorted UK Stocks

UK Housebuilder Stocks Under Pressure

Many of the stocks on the 38-strong list have been hit by the selloff following the outbreak of the Iran war.

Housebuilders Vistry VTY, Persimmon PSN, Barratt Redrow BTRW, and Taylor Wimpey TW. also have short positions of at least 3% held against their shares. Crest Nicholson CRST has seen the biggest year-to-date fall in share price terms on the list, losing nearly 40% on one trading day in late April.

The sector came into the year hoping expected interest rate cuts would help improve sentiment. As the Iran war and associated supply disruptions cloud the interest rate outlook, housebuilders have sold off on fears of the impact on UK inflation, mortgage rates, affordability, and consumer confidence.

Another stock affected by the war is Wizz Air WIZZ, which is the most-shorted UK stock that is rated by Morningstar analysts. Some 10.53% of Wizz Air shares are held short, with J.P. Morgan Asset Management’s 2.84% position the largest bet against the firm. Hedge funds Two Sigma Investments and Argonaut Capital Partners also hold short positions.

Shares in the airline operator have dropped 32.45% so far this year. Stocks across the sector have fallen since the start of the Middle East conflict. In March, Wizz Air warned of a EUR 50 million hit to profits owing to the war.

Morningstar analysts assign Wizz Air a 4-star rating, meaning it trades below its fair value. Fellow airline easyJet EZJ has also drawn short interest with 5.47% of its share capital held short.

Other Morningstar-rated stocks that feature among the most-shorted for the month include Burberry BRBY, Tate & Lyle TATE, and WPP WPP.

Short sellers may also target stocks which have enjoyed strong share price performance, betting the momentum may not continue. Stocks on the list include alternative energy developers Ceres Power CWR and ITM Power ITM, which are both up over 130% for the year to date.

How Does Short-Selling Work?

While reasons for shorting a stock can vary, short interest can be an indicator of sentiment towards a stock or sector.

Short selling can be highly profitable for professional investors. An investor borrows shares from brokers to sell them at the current market price, in the hope of buying the same shares back at a cheaper price later on.

The strategy can flag to investors an early warning sign of problems ahead for certain companies, such as in the Wirecard scandal in Germany.

However, shorting can be a highly risky strategy. A “short squeeze,” such as the GameStop saga, can lead to significant losses for short sellers. This is where the share price of a heavily-shorted stock rises sharply due to positive news or increased buying.

Short sellers are then forced to sell their borrowed shares in order to cover their positions. In turn, this drives the share price even higher.

Short-Selling: The Methodology

The Financial Conduct Authority reports the amount of short positions in publicly traded stocks every day as well as the names of the institutions holding those positions.

The data for this article is compiled by totaling short positions taken over the past 30 days to provide a picture of net short positions in a company.

Data is included for all stocks where at least 3% of shares are shorted.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.

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