Moderna was the most shorted S&P 500 healthcare stock in July

Short percentage in S&P 500’s healthcare companies fell at the end of July from June, with biotechnology industry emerging as the most shorted sector yet again this month.

The average short interest for S&P 500 Health Care Index Sector (NYSEARCA:XLV) went down 10 basis points to 1.48% at the end of July, from 1.58% interest at the end of June.

XLV, which has a 12.12% weightage in the broader S&P 500 index, gained 1.96% in the last month, trading above the S&P 500 index’s (SP500) loss of 3.41%.

Industry analysis:

Average short Interest as percentage of floating shares

Biotechnology was the most shorted industry in the healthcare index in July for the fourth time in a row. Short interest in this sub-sector, however, fell to 1.97% from 2.11% in June.

Life Sciences tools and services was the second most shorted, with short interest of 1.65% in July.

Pharmaceuticals industry continued to be the least shorted sub-sector with 1.27% short percentage of float.

Stocks with highest and lowest short positions

Ranked by short interest as a percentage of shares float

Moderna (MRNA) was the most shorted healthcare company at July-end, with short interest at 6.69%. Bio-Rad Laboratories (BIO) came in second with a short interest of 6.63%, followed by Incyte (INCY) with a short interest of 6.41%.

Eli Lilly (LLY), which has the highest weightage in the XLV index, was the least shorted company with a short interest of 0.64%, followed by Becton Dickinson (BDX) with a short interest of 0.69%.

Boston Scientific (BSX) was the third least shorted company in the month of July, with short percentage of 0.74%.