This beaten down ASX 200 stock just defied short sellers to surge 9%. Here's why

Investors are piling into the heavily shorted ASX 200 company today. But why?

| More on:
Woman attached to rocket flies into the air

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) is up 0.2% today, with one ASX 200 stock doing plenty of the heavy lifting.

The resurgent stock in question is medical device company Polynovo Ltd (ASX: PNV), which specialises in the treatment of burns and surgical wounds with its NovoSorb technology.

Polynovo shares closed on Friday trading for $1.10. In early afternoon on Monday, shares are changing hands for $1.20 apiece, up 9.1%.

Despite that big boost, Polynovo shares remain down 52% since this time last year.

Today's surge will come as welcome news to faithful shareholders, though not so much to the cadre of short sellers betting against the stock. Polynovo currently has some 11.6% of its shares held short, the fifth highest on the ASX.

Here's what's sending the beaten-down ASX 200 stock flying higher today.

ASX 200 stock sets short sellers back

The Polynovo share price is racing higher following the release of the ASX 200 stock's full-year financial results (FY 2025).

Investors are reacting favourably to the 28.9% year-on-year increase in sales to $118.6 million.

The company reported strong growth in its US sales of $88.4 million, up 28.7%, with rest of world sales increasing by 29.6% from FY 2024 to $30.3 million.

On the bottom line, Polynovo reported a net profit after tax (NPAT) for the 12 months of $13.2 million, up 151.2% year on year.

As at 30 June, the ASX 200 stock held cash and cash equivalents of $33.5 million.

The company cited key achievements over the year, including "strong" NovoSorb MTX sales growth following the successful US launch in the fourth quarter of 2024, with sales of $6.7 million in FY 2025.

The 12 months also saw the company progress construction of its new manufacturing facility in Port Melbourne. Polynovo said the facility remains on budget and is intended to be "practically complete" by December.

What did management say?

Commenting on the results sending the ASX 200 stock flying higher today, Polynovo acting CEO Robyn Elliott said, "FY 2025 has been a successful year with significant growth in all major indicators: patients treated, units sold, revenue, profit and regulatory approvals."

Elliot added that she looks forward to FY 2026 "as we drive the commercial roll out of MTX and deliver increased value and positive outcomes for all our stakeholders".

ASX 200 investors will also have noted Polynovo chairman David Williams' bullish profit outlook for the year ahead.

According to Williams:

While I am still focused on revenue growth, shareholders will find it refreshing in FY 2026 to see major capital expenditure coming to an end and increased cash from operations dropping to the bottom line.

Motley Fool contributor Bernd Struben 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. The Motley Fool Australia has recommended PolyNovo. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

A young man stands facing the camera and scratching his head with the other hand held upwards wondering if he should buy Whitehaven Coal shares
Consumer Staples & Discretionary Shares

ASX 300 stock tumbles despite strong first half profit growth and guidance upgrade

This KFC restaurant operator is performing very positively in FY 2026.

Read more »

A man looking at his laptop and thinking.
Earnings Results

Metcash shares on watch amid $142m first half profit and flat dividend

It is results day for this popular income stock.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Earnings Results

Fisher & Paykel shares surge 8% on half-year results

The market's response was in appreciation of strong results and upgraded guidance.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Earnings Results

Guess which ASX 200 stock is jumping 14% on record results

This travel technology company had a record half. Let's dig deeper into things.

Read more »

A plumber gives the thumbs up
Earnings Results

Reece 1Q FY26: Revenue growth, profit margin pressures, and a $365m buyback

Reece posted higher revenue but softer profit margins in 1Q FY26.

Read more »

Shot of a young scientist using a digital tablet while working in a lab.
Earnings Results

ALS reports higher revenue, profit, and dividend for H1 FY26

ALS reported stronger H1 FY26 earnings as Commodities performance drove higher revenue, profit, and a bigger dividend for shareholders.

Read more »

a man in a green and gold Australian athletic kit roars ecstatically with a wide open mouth while his hands are clenched and raised as a shower of gold confetti falls in the sky around him.
Earnings Results

Catapult Sports earnings: ACV and profit hit record highs in 1H FY26

Catapult Sports lifted its ACV by 19% and operating profit by 50% in 1H FY26, while continuing global expansion.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Materials Shares

Why are James Hardie shares jumping 9% today?

Let's see why this blue chip is getting a lot of investor attention from investors on Tuesday.

Read more »