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Short Selling
/Short Selling: Pilbara Minerals and Deep Yellow shorts climb, Lendlease shorters cover
Short Selling
Short Selling: Pilbara Minerals and Deep Yellow shorts climb, Lendlease shorters cover
By
Kerry Sun
Wed 13 Dec 23, 10:43am (AEDT)
Source: Shutterstock
Stocks in article
Key Points
- Pilbara Minerals remains the most heavily shorted stock on the ASX
- Uranium developer Deep Yellow logs a notable week-on-week spike in short interest
- Shorts in Lendlease drop significantly from 7.72% to 3.51%
Welcome back to the Short Seller Series, where we delve into the most heavily shorted stocks on the ASX and highlight those with significant changes over the past week.
Short selling data is four days behind today's date because reporting is not mandatory until three business days after the trade. The tables below compare short interest changes between November 29 and 6 December 2023.
Most shorted stocks
Ticker | Company | Short % | Prev Week | % Chg |
|---|---|---|---|---|
Pilbara Minerals | 20.45% | 19.25% | 1.20% | |
Syrah Resources | 14.31% | 16.82% | -2.51% | |
Core Lithium | 11.36% | 11.35% | 0.01% | |
Genesis Minerals | 10.11% | 9.52% | 0.59% | |
Idp Education | 9.55% | 9.21% | 0.34% | |
Flight Centre Travel Group | 8.91% | 9.07% | -0.16% | |
Sayona Mining | 8.85% | 9.46% | -0.61% | |
Bank of Queensland | 8.17% | 8.49% | -0.32% | |
Weebit Nano | 7.77% | 7.58% | 0.19% | |
Deep Yellow | 7.15% | 4.90% | 2.25% |
Key changes and takeaways:
The next week's worth of short data will be key for Pilbara Minerals. Lithium stocks bounced strongly between December 6-8. Will the upcoming data point to short covering or will shorters use this as an opportunity to reload – In anticipation of further lithium price declines?
Syrah is approaching a critical juncture. China announced in October plans to expand export controls to include a range of graphite products, effective 1 December 2023. Morgan Stanley analysts drew parallels with a previous ban on gallium and germanium exports, where the commodity prices only really started to soar a few weeks after the export controls became effective.
Gallium and germanium price chart (Source: Morgan Stanley)
Deep Yellow experienced a timely jump in short interest. The stock is down around 20% since late November despite upbeat announcements including a Mineral Resource upgrade and a Definitive Feasibility Study review.
Stocks with Rising Short Interest
Ticker | Company | Short % | Prev Week | % Chg |
|---|---|---|---|---|
Deep Yellow | 7.15% | 4.90% | 2.25% | |
Carsales | 2.39% | 0.51% | 1.88% | |
Pilbara Minerals | 20.45% | 19.25% | 1.20% | |
Healthco Healthcare and Wellness REIT | 4.26% | 3.10% | 1.16% | |
Imdex | 2.15% | 1.40% | 0.75% | |
Mineral Resources | 4.92% | 4.20% | 0.72% | |
Strike Energy | 6.05% | 5.34% | 0.71% | |
Genesis Minerals | 10.11% | 9.52% | 0.59% | |
Peninsula Energy | 7.03% | 6.48% | 0.55% | |
Westgold Resources | 0.98% | 0.43% | 0.55% | |
Integral Diagnostics | 3.20% | 2.67% | 0.53% |
Where Are Shorters Covering
Ticker | Company | Short % | Prev Week | % Chg |
|---|---|---|---|---|
Lendlease Group | 3.51% | 7.72% | -4.21% | |
Syrah Resources | 14.31% | 16.82% | -2.51% | |
Omni Bridgeway | 4.86% | 7.27% | -2.41% | |
Paladin Energy | 2.20% | 4.25% | -2.05% | |
Arafura Rare Earths | 4.92% | 6.59% | -1.67% | |
Imugene | 5.34% | 6.89% | -1.55% | |
Argosy Minerals | 3.94% | 5.38% | -1.44% | |
Ioneer | 4.04% | 5.42% | -1.38% | |
Tietto Minerals | 1.70% | 3.04% | -1.34% | |
Insignia Financial | 4.84% | 6.09% | -1.25% | |
Brainchip | 3.35% | 4.50% | -1.15% | |
Seven West Media | 0.48% | 1.58% | -1.10% | |
Aeris Resources | 0.35% | 1.44% | -1.09% | |
Bubs Australia | 1.31% | 2.38% | -1.07% | |
Temple & Webster | 3.81% | 4.78% | -0.97% | |
Elders | 4.43% | 5.34% | -0.91% | |
Grange Resources | 0.36% | 1.27% | -0.91% | |
Vulcan Energy Resources | 3.62% | 4.41% | -0.79% | |
Baby Bunting | 1.24% | 1.99% | -0.75% |
Key changes and takeaways:
Lendlease experienced a sizeable pullback in short interest. The stock is up around 4.6% in December following a rally in bond prices (and a steep fall in yields). The only major news to have come out of Lendlease dates back to early November where the company mutually ended its $21.8 billion development agreement with Google. "The project was expected to commence in FY26 so there is no near term impact to earnings. LLC will receive a payment in consideration of project termination (undisclosed) which will be realised in FY24 earnings but FY24 guidance has been retained," noted Citi analysts, which retained a Buy rating with a $9.50 target price.
Uranium is showing some mixed signals. Short covering is taking place in the largest and most liquid uranium play – Paladin Energy. Whilst increasing in other names like Deep Yellow and Peninsula Energy.
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