Over the past months, Flight Centre Travel Group Ltd (ASX: FLT) shares have often found themselves among the 10 most shorted shares on the ASX.
And this week is no exception.
The S&P/ASX 200 Index (ASX: XJO) travel stock kicked off the week as the ninth most shorted share on the ASX, with 8.9% of its shares held short.
Depending on their timing, of course, some short sellers may or may not have made money betting against Flight Centre.
But it certainly doesn't look like they will this week.
As of last Friday's close, Flight Centre stock is up 1.8%, currently trading for $20.85 a share.
As for the past 12 months, here's what I'd have today if I'd invested $10,000 in Flight Centre a year ago.
How have Flight Centre shares performed over the year?
On 19 January 2023, the ASX 200 travel stock closed the day trading for $15.86.
That means I could have snapped up 630 shares, with enough change left over for a pint of beer.
As mentioned above, in afternoon trade today shares are trading for $20.85. Meaning my 630 Flight Centre shares would be worth $13,135.50. Or a handy gain of $3,135.50 from my $10,000 investment a year ago.
But let's not forget the welcome return of the company's fully franked dividends, paid out on 19 October.
While not very large at 18 cents per share, Flight Centre paid its first dividend this year since 2019. The dividends were then derailed by the outbreak of the global pandemic.
If we add those dividends back in then the accumulated value of my Flight Centre stockholdings equates to $13,248.90.
That's a 32.5% gain in 12 months.
Short sellers, take note.
What now?
Despite the strong short interest in Flight Centre shares, Morgans analysts remain quite optimistic about the company's outlook.
In late December, the broker had an 'add' rating on the stock with a $26 price target.
That's almost 25% above the current price.
