Most and least shorted mid- to mega-cap healthcare stocks at the end of October
Short interest data from late October 2026 highlights deeply divided investor sentiment across the healthcare sector. Strong bearish bets remain heavily concentrated in high-volatility biotechnology, equipment, and digital health names, with Recursion Pharmaceuticals RXRX leading short interest at 27.13%, followed closely by Tango Therapeutics
TNGX at 26.56%.
Conversely, defensive pharma titans like Johnson & Johnson JNJ and Eli Lilly
LLY maintain minimal short positions, both hovering well below 0.90% (0.70% and 0.78%, respectively).
Overall, short sellers continue to target speculative biotechnology, gene-editing, and precision oncology developers, while traditional pharmaceutical anchors and essential healthcare supply leaders enjoy high institutional support with minimal short exposure.
This cautious positioning reflects relative sector dynamics. Year-to-date, the Health Care Select Sector SPDR® Fund XLV has surged 19.43%, outperforming the S&P 500's 10.73% gain and providing strong underlying momentum given healthcare's 12.1% weighting in the broader index.
Here are the top 5 most shorted mid- to mega-cap healthcare stocks (as a % of shares outstanding) as of October 31:
Recursion Pharmaceuticals RXRX – Biotechnology | Short Interest: 27.13%
Tango Therapeutics TNGX – Biotechnology | Short Interest: 26.56%
Beam Therapeutics BEAM – Biotechnology | Short Interest: 26.26%
TransMedics Group TMDX – Health Care Equipment | Short Interest: 25.29%
Hims & Hers Health HIMS – Health Care Services | Short Interest: 23.77%
Here are the five least shorted mid- to mega-cap healthcare stocks (as a % of shares outstanding) as of October 31:
Johnson & Johnson JNJ – Pharmaceuticals | Short Interest: 0.70%
Bausch + Lomb Corporation (BLCO) – Health Care Supplies | Short Interest: 0.71%
Eli Lilly and Company LLY – Pharmaceuticals | Short Interest: 0.78%
AbbVie ABBV – Biotechnology | Short Interest: 0.88%
BioNTech SE BNTX – Biotechnology | Short Interest: 0.90%
More on the healthcare sector:
- XLV: Safe Haven, But That Cuts Both Ways
- S&P 500 Sector Outlook: Favor XLC And XLK, Underweight XLP As Earnings Leadership Remains Uneven
- 5 Undervalued Oncology Stocks Wall Street Is Overlooking
- Notable healthcare headlines for the week: Eli Lilly, Merck, and AstraZeneca in focus
- Healthcare sector rallies in October amid rotation away from technology stocks