The Polynovo Ltd (ASX: PNV) share price had a tough day on the ASX, touching a new multi-year low of $1.165.
This comes despite the medical device company not releasing any announcements to the ASX in almost a month.
At the close, Polynovo shares were swapping hands for $1.17 apiece, down 3.31%. They are now down 25% this year to date.
Let's take a look at what is impacting the company's share price of late.
Polynovo continues to attract short interest
The negative sentiment around the Polynovo share price continues to attract the attention of investors holding short positions.
Largely, the inconsistent performance of the business regardless of its outlook may have led to a deterioration in the Polynovo share price.
Management previously stated that challenging market conditions caused by COVID-19 created headwinds for the company.
Although the United States reported a surge in sales volumes, as a whole Polynovo missed the mark on investor expectations. This is mainly related to the underperformance achieved in the United Kingdom, Ireland, and Europe.
Last Wednesday, the Australian Securities & Investments Commission (ASIC) released its short position report indicating an increased short interest in Polynovo shares.
As such, Polynovo took up the seventh spot on the list with 9% of its shares being shorted. This represents a 5.7% increase from the start of the month when its shares had a short interest of 8.51%.
Given the scope of short positions being taken up, it is possible investors believe the company's performance will be underwhelming when it reports its half-year results later this month.
About the Polynovo share price
Financial advisory services firm Wilsons cut its 12-month price target for Polynovo shares by 29% to $1.42 in November.
Based on the current Polynovo share price, this implies an upside of roughly 21% for investors.
Looking back, the medical device company's shares fell around 60% in value in 2021. In comparison, the S&P/ASX 200 Healthcare Index (ASX: XHJ) gained around 8% in the same time frame.
