Key Takeaways
- Food chain Greggs, which is one of the most-shorted UK stocks, surged almost 20% during earnings season.
- Housebuilder Vistry retains its place as the most-shorted UK stock, while Ibstock, Capita and Ocado are also attracting significant short seller interest.
- Changes to the FCA’s disclosure requirements mean many more stocks have made our short monitor.
High street baker Greggs GRG has caught short-sellers off guard after a stronger-than-expected first-half earnings report caused shares in one of the UK’s most shorted stocks to surge almost 20% after earnings.
As of July 31, short-sellers retained a 13.1% aggregate net short position against the sausage roll maker. Prior to its first-half earnings release on July 29, shares in Greggs were flat for the year.
Pretax profit rose 19.7%, defying concerns from investors over the firm’s growth plans and shifting consumer habits.
“Greggs has been a heavily shorted company in the UK with hedge funds betting against the FTSE 250 baker amid concerns about its UK market saturation and the impact of GLP weight loss drugs on demand,” says Interactive Investor’s head of investment, Victoria Scholar.
“However Greggs has been quick to respond, expanding its offering by introducing healthier salad options to widen its lunchtime choices and broaden its appeal toward the more calorie conscious consumer,” she says.
The 5 Most-Shorted UK Stocks
Housebuilding Stocks Dominate the UK’s Most-Shorted List
Vistry VTY and Ibstock IBST remain among the most-shorted stocks as the headwinds hampering UK housing and construction stocks show no signs of letting up.
Stocks in the sector, including Morningstar-rated Barratt Redrow BTRW, Persimmon PSN, and Taylor Wimpey TW., have regularly featured among the most-shorted stocks in recent months.
In terms of stocks under Morningstar’s coverage, Ocado OCDO has the most significant short interest at 13.4%. Shares in the online grocer have crashed over 90% since its pandemic era highs.
Shares plummeted 20% in the day’s trading after its half-year earnings on July 16, which disclosed revenue growth of just 1% for the six-month period.
“While results fell short of our expectations, we still think Ocado can meet its unchanged full-year targets, thanks to cost-saving initiatives,” says Morningstar analyst Verushka Shetty.
“However, Ocado’s new-deal momentum has been weaker than expected since the end of market exclusivity, making us uncertain about medium-term recurring revenue growth.”
Other stocks under Morningstar coverage attracting major short interest include airliner Wizz Air WIZZ, medical device manufacturer Smith & Nephew SN., and advertising and events firm WPP WPP.
Some of the stocks on the short-selling list have seen strong year-to-date gains. This sort of move can trigger a “short squeeze,” which 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.
5 Biggest Share Price Gainers in 2026
With increased in UK stocks this year from overseas buyers, takeover interest can explain some of these upward share price movements. For example, budget airline easyJet is currently the subject of a takeover battle between two US private equity firms, which has driven the company’s shares up nearly 25% this year.
Not every heavily shorted stock has rallied, however. Several remain among the weakest performers in the UK market this year.
5 Biggest Share Price Fallers in 2026
- Crest Nicholson CRST
- Vistry Group VTY
- Aston Martin Lagonda Global Holdings AML
- Craneware CRW
- Future FUTR
FCA Short-Selling Rule Changes Explained
The Financial Conduct Authority has changed its short-selling disclosure requirements since our last update. Rather than publishing individual short positions, the regulator now anonymizes the data and instead reveals an aggregate net short position in publicly traded stocks every day.
As a result of the changes, a far greater number of stocks now appear above our 3% threshold.
What Is Short Selling and Why Do Investors Short UK Stocks?
While reasons for shorting a stock can vary, short interest can be an indicator of sentiment toward a stock or sector.
Short-selling can be highly profitable for professional investors if they get the call right. They don’t need to own the shares to short them: The 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. Or they can use financial contracts called derivatives to profit from changes in the price of the asset without having to borrow or sell individual shares.
As a strategy, short-selling can flag to investors an early warning sign of problems ahead for certain companies.
