The 10 most shorted ASX stocks plus the biggest risers and fallers – Week 3

Welcome back to the Short Seller Series – A recap of the most heavily shorted stocks on the ASX and those experiencing significant changes to short interest 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 will compare:

• Week-on-week changes between 6 January 2025 and 27 December 2024

• Month-on-month changes between 6 January 2025 and 20 December 2024

Most Shorted

Key takeaways:

• Boss Energy and Paladin Energy remain the market's most shorted stocks

• Overall, a relatively incremental week for changes in short interest among the most shorted names

Rising Shorts

Key takeaways:

• DroneShield shares have bounced strongly in recent weeks, up 23% since late December, but still 70% below its July 2024 peak. The company has secured several significant contracts in the past few weeks including a $9.8m Latin American deal announced on January 6 and an $8.2 million European contract from December 5. Despite this positive momentum, Bell Potter analysts adjusted their target price downward from $1.35 to $1.20 in late October, citing lower-than-expected revenues and increased operating costs. The analysts noted, "Whilst DroneShield's revenue YTD has been disappointing, we view this as an opportunity to reset market expectations, which were overly optimistic for CY24."

• Paladin Energy has seen a notable increase in short interest week-over-week, following last week's 3.7% decline that coincided with its Fission Uranium Corp acquisition completion.

• Bellevue Gold faced increased short interest after announcing a downward revision to its FY25 production guidance on January 6. The emerging gold miner now expects 150-165,000 ounces – approximately 7% below Macquarie's estimates. This news triggered a 13.9% stock decline.

Most Covered

Key takeaways:

• Novonix continues to pursue major funding initiatives, having secured a conditional commitment from the US Department of Energy for a direct loan of up to US$754.8 million on December 17, although its application for Inflation Reduction Act tax credits was unsuccessful.

• Overall, relatively limited short covering activity. A few names may be squeezing short sellers (e.g. Beach Energy rallying on higher oil prices, Insignia is in the midst of a bidding war). However, most heavily shorted stocks continue to face downward pressure.