Short selling: The most shorted and targeting stocks on the ASX - Week 43
Short sellers continue to pile into lithium stocks, notably Pilbara Minerals.
Source: iStock
Mentioned
KEY POINTS
- Pilbara Minerals remains the most heavily shorted stock on the ASX, with short interest increasing to 15.23%
- Short interest in lithium stocks is rising amid declining lithium prices and EV demand concerns
- Short sellers are covering their positions in Ingenia Communities, IGO, and uranium stocks
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 compares short interest changes between 11 and 18 October.
Most shorted stocks
Ticker | Company | Short % | Prev | % Chg |
|---|---|---|---|---|
Pilbara Minerals | 15.23% | 13.71% | 1.52% | |
Syrah Resources | 11.58% | 10.64% | 0.94% | |
Genesis Minerals | 11.21% | 10.94% | 0.27% | |
Core Lithium | 10.04% | 9.54% | 0.50% | |
Liontown Resources | 9.78% | 9.73% | 0.05% | |
Appen | 9.32% | 8.47% | 0.85% | |
Idp Education | 9.31% | 9.28% | 0.03% | |
Flight Centre | 9.24% | 9.48% | -0.24% | |
Sayona Mining | 8.85% | 8.44% | 0.41% | |
Bank of Queensland | 8.59% | 8.76% | -0.17% |
Pilbara Minerals remains a target of persistent shorting, with short interest climbing steadily from 6.2% in July, to 11.5% at the start of October and now 15.2%. Here's a recap of recent lithium and company-related headlines:
Lithium prices experienced a slight bounce in mid-October but resumed its decline amid high inventories and increasingly low demand
Tesla's China-made EV sales fell 10.9% year-on-year for the month of September. Although Tesla says the sequential decline in volumes was due to planned downtimes for factory upgrades
Pilbara Minerals rallied 5.9% on Tuesday, 24 October after Jarden upgraded the stock from Sell to Buy with a $4.70 target price
Electric vehicle manufacturers are shifting their focus from production volume to profitability. General Motors management said on Tuesday, "we are also moderating the acceleration of EV production in North America to protect our pricing, adjust to slower near-term growth in demand."
Where are shorters covering?
Ticker | Company | Short % | Prev | % Chg |
|---|---|---|---|---|
Ingenia Communities | 2.87% | 3.86% | -0.99% | |
IGO | 3.30% | 3.83% | -0.53% | |
Alligator Energy | 0.61% | 1.08% | -0.47% | |
Capricorn Metals | 3.22% | 3.68% | -0.46% | |
Paladin Energy | 3.53% | 3.96% | -0.43% | |
Auteco Minerals | 0.24% | 0.64% | -0.40% | |
Perenti | 0.05% | 0.43% | -0.38% | |
Aussie Broadband | 2.08% | 2.45% | -0.37% | |
Bapcor | 1.31% | 1.64% | -0.33% | |
Regis Resources | 1.44% | 1.76% | -0.32% |
These are the stocks that have experienced the largest week-on-week change in short interest. The changes this week are rather incremental.
Shares in rental and holiday accommodation provider Ingenia Communities tumbled 5.5% on Friday, 13 October after a 41.8 million share block trade crossed at $3.90. The trade represented 10.25% of the company. It was reported that Sun Communities was seeking to divest its stake in Ingenia.
Shorts have eased for two uranium names (Alligator Energy and Paladin Energy). The Global X Uranium ETF (as a barometer for uranium stocks) has eased around 10% from its late September high.
Where are shorters going?
Ticker | Company | Short % | Prev | % Chg |
|---|---|---|---|---|
Pilbara Minerals | 15.23% | 13.71% | 1.52% | |
Newcrest Mining | 1.89% | 0.39% | 1.50% | |
Syrah Resources | 11.58% | 10.64% | 0.94% | |
Appen | 9.32% | 8.47% | 0.85% | |
Super Retail Group | 4.58% | 3.84% | 0.74% | |
Reliance Worldwide | 1.80% | 1.17% | 0.63% | |
IPH | 3.01% | 2.39% | 0.62% | |
Treasury Wine Estates | 1.34% | 0.76% | 0.58% | |
Core Lithium | 10.04% | 9.54% | 0.50% | |
Harvey Norman | 6.66% | 6.16% | 0.50% |
Short-sellers are persistently targeting vulnerable sectors like lithium, battery metals and retail. Despite the persistent bearishness, certain retail segments are exhibiting a surprising resilience.
Super Retail Group reported 4% year-on-year sales growth for the first 16 weeks of FY24. For perspective:
Businesses including BCF, Rebel and Supercheap Auto delivered positive sales growth for the above period while sales for Macpac fell 7%
The Group is cycling 20% like-for-like sales growth from the prior period (FY23. vs FY22)
Macquarie analysts expect Group revenue to fall 0.6% for FY24
