The 10 most shorted ASX stocks plus the biggest risers and fallers – Week 48

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 19 and 26 November 2024

• Month-on-month changes between 22 October and 26 November 2024

Most Shorted

Key takeaways:

• Short interest in uranium stocks bounced back (week-on-week) after a brief pullback

• Short sellers appear to be done with the lithium sector. Short interest in a bellwether name like Pilbara Minerals has dropped from 22.50% in early August to around 11.58% currently, representing approximately 330 million shares covered by short sellers. While short covering should theoretically support the share price, Pilbara shares have eased around 18.5%.

Rising Shorts

Key takeaways:

• PWR Holdings experienced a dramatic 24.5% one-day selloff on 20 November following a major guidance downgrade. The company projected first-half NPAT between $3.2-3.7 million, representing a 64% year-on-year decline and roughly 68% below Citi's expectations. While analysts from Bell Potter, UBS, and E&P viewed the selloff as overdone and emphasised long-term growth drivers, short sellers remain confident about potential further downside. The stock has since rebounded by 21%.

• Megaport followed a similar narrative, with a 9.4% one-day selloff on 22 November after its AGM revealed guidance that fell short of analyst expectations. Short sellers are currently betting on continued weakness in this underperforming tech stock, which has declined 17% year-to-date compared to peers like NextDC, which has gained 22%.

Most covered

Key takeaways:

• Ampol has struggled throughout the year due to declining refining margins. Macquarie analysts suggest these margins are likely experiencing a cyclical low and anticipate potential tailwinds including peak capital expenditure, ongoing cost reductions, and benefits from a stronger US dollar — a rationale that might explain the current short interest pullback.

• Dexus reported its first-quarter update on 30 October, with the CEO highlighting strengthening transaction markets that should support liquidity and value discovery. Morgan Stanley views this positively, suggesting potential benefits for companies like CHC and GPT seeking to raise third-party funds. The company recently reported selling two office properties for a combined $443.2 million, marginally below book value at a 0.8% discount.