The medical device company’s shares can’t seem to catch a break this week.
The post How have Polynovo shares been performing since leaving the ASX 200? appeared first on The Motley Fool Australia. –
TheÂ Polynovo LtdÂ (ASX: PNV) share price is heading south again today despite the company not releasing any announcements.
Since the start of the week, the medical device companyâs shares are down 3% to currently trade at $1.295 each.
While down 1.15% today, this isnât the case for theÂ S&P/ASX 200 IndexÂ (ASX: XJO) which is 1.59% higher to 6,535 points at the time of writing.
Let’s take a look at what is weighing down the Polynovo share price of late.
Whatâs impacting Polynovo shares?
Besides theÂ recent buying actionÂ by the companyâs board, it has been relatively quiet for Polynovo.
Its last trading update came in early April when management provided a snapshot of the company’sÂ third-quarter results.
Since then, Polynovo shares tumbled to a multi-year low of 83.5 cents before rebounding to February 2022 levels.
The share price weakness came off the back of negative investor sentiment across the ASX followingÂ fears surrounding a possible recession.
However, added to the mix is the large number of short-sellers on Polynovoâs registry.
The latestÂ short position reportÂ by the Australian Securities & Investments Commission (ASIC) reveals the level of short interest within companies.
Polynovo remains in the top 10 of short interest ASX stocks, with 10.95% of its shares being shorted by investors.
In case you arenât aware, short-selling is a common trading strategy that aims to profit from the fall in the price of a security. The goal is for an investor to borrow shares then sell them and buy them back at a lower price for a profit.
On top of this, theÂ S&P/ASX 200 HealthcareÂ (ASX: XHJ) sector has fallen by 4.63% in the past week and is down 15% in 2022.
Yet perhaps the biggest selling pressure has come from Polynovo’s removal from theÂ S&P/ASX 200 IndexÂ (ASX: XJO) which took effect on Monday.
The S&P Dow Jones Indices announced changes in its quarterly rebalance earlier this month.
Polynovo’s removal from the ASX 200 means that fund managers must abide by their investing mandate which permits them to only buy shares included in specific indices. It’s commonplace that shares can climb or fall after being included in or excluded from a particular index.
Polynovo share price summary
While staging a small rebound from early May onwards, the Polynovo share price is down 15% year-to-date.
When looking at the past 12 months, its shares are deep in the red by 53%.
Based on todayâs price, Polynovo presides aÂ market capitalisationÂ of about $856 million.
The post How have Polynovo shares been performing since leaving the ASX 200? appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.