The 10 most shorted ASX stocks plus the biggest risers and fallers – Week 46

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 5 and 12 November 2024

• Month-on-month changes between 15 October and 12 November 2024

Most Shorted

Key takeaways:

• Short interest in lithium stocks is retreating from peak levels across both weekly and monthly timeframes

• Paladin Energy has moved to the second-most shorted position, displacing Boss Energy to third place

Rising Shorts

Key takeaways:

• Short sellers piled into Paladin Energy after the company downgraded its FY25 production guidance for the Langer Heinrich mine, citing ore grade variability and water supply issues. Paladin shares finished the session (12-Nov) down 28.9% to levels not seen since August 2023

• Endeavour Group shares experienced a 10.3% dip between November 8-14 following its Q1 FY25 sales update, which revealed continued pressure on retail comparable sales leading to operating deleverage and downward earnings revisions. The update aligns with similar reports from competitors Woolworths and Coles, highlighting increased promotional activity across the sector as consumer price sensitivity grows. Market sentiment suggests ongoing skepticism about recovery prospects, with persistent concerns about sustained growth challenges, margin pressure from promotional activity, and stubborn cost inflation.

Most Covered

Key takeaways:

• Short interest in lithium stocks is backing off from record levels. This is taking place in parallel with stabilising prices, with spodumene up around 11% from mid-October lows (from US$750 a tonne to US$835).

• Insignia Financial is crushing shorts after an almost 50% rally since early September. The company's FY25 Investor Day (14 Nov) was focused on substantial cost reductions and operational streamlining, particularly within its Master Trust and advice segments. Management set ambitious long-term cost targets, aiming for significant expense reductions and double-digit EBITDA growth by FY30. While analysts see potential upside if targets are achieved, they remain cautious due to the extended timeline to FY30, significant execution risks, and limited visibility on intermediate progress.