Short sellers reduce bets against S&P500 information technology stocks in March

Seeking Alpha News (Tue, 15-Apr 1:08 PM)

Short sellers reduced their bets against the information technology sector in March. The sector which holds the highest weightage on the S&P had an average short interest of 1.74% in March, down from 1.80% at the end of February. 

The S&P 500’s information technology sector (NYSEARCA:XLK) has declined more than 13% so far this year, compared to a more than 8% decline in the broader benchmark index. 

Super Micro Computer (SMCI) remained the most shorted stock in the sector in March, while Microsoft (MSFT) took Teledyne Technologies (TDY)’s spot as the least shorted stock. 

Stocks with the largest and least short positions

Ranked by short interest as a percentage of shares float

Super Micro Computer (SMCI), Enphase Energy (ENPH), and Western Digital (WDC) were the top three most shorted stocks in March, just like the previous month. Short interest in SMCI rose to 22.84% in March, from 21.34% at the end of February. 

While, Enphase Energy (ENPH) and Western Digital (WDC) had a short interest of 14.29%, and 9.34% respectively. 

Microsoft (MSFT) was the least shorted stock in the sector last month, with a short interest of 0.68%, preceded by Apple (AAPL) and Keysight Technologies (KEYS), with short interests of 0.75% and 0.94% respectively. 

Industry Analysis

Average short interest as a percentage of floating shares

Electronic Manufacturing Services was the most shorted industry within the information technology sector, with 3.36% short interest in March, up from 2.74% in February. 

IT Services was the second most shorted industry with 2.31% short interest as of March 31, compared to 2.29% at the end of February. 

Electronic Equipment, Instruments & Components was the least shorted industry in the sector this month as well, with a short interest of 1.39%.