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Short Seller Series: Notable Trends in ASX Short Selling
As we review the latest short selling trends, this recap focuses on the most heavily shorted stocks on the Australian Securities Exchange (ASX) and significant fluctuations in short interest recorded in the last week.
Understanding Short Selling Data
Short selling data is reported three business days post-transaction, which means it reflects activities up to four days prior. This analysis compares week-on-week changes from August 18 to 25, month-on-month changes from July 28 to August 25, and highlights both the most covered stocks and those with a short interest rise of 0.5% or more.
Most Shorted Stocks
| Ticker | Company | Short % | Week-on-Week Change | Month-on-Month Change |
|---|---|---|---|---|
| BOE | Boss Energy | 21.76% | -1.02% | +5.45% |
| PDN | Paladin Energy | 18.32% | -0.14% | +1.15% |
| PLS | Pilbara Minerals | 15.46% | +0.37% | -0.53% |
| IEL | IDP Education | 14.15% | +0.04% | +2.44% |
| PNV | Polynovo | 12.04% | -0.99% | +1.00% |
| MIN | Mineral Resources | 11.84% | +0.32% | -1.14% |
| LIC | Lifestyle Communities | 11.52% | 0.00% | -0.17% |
| CTD | Corporate Travel Management | 9.80% | -0.03% | -0.29% |
| PWH | PWR Holdings | 9.46% | +1.12% | +1.36% |
| SLX | Silex Systems | 8.98% | +0.10% | -2.23% |
Stocks with Rising Short Interest
| Ticker | Company | Short % | Week-on-Week Change | Month-on-Month Change |
|---|---|---|---|---|
| IPH | IPH Limited | 4.32% | +2.02% | +2.75% |
| MVF | Monash IVF Group | 6.82% | +1.62% | +2.39% |
| RWC | Reliance Worldwide Corp. | 2.75% | +1.40% | +1.47% |
| ING | Inghams Group | 2.04% | +1.22% | +1.10% |
| LKE | Lake Resources | 1.71% | +1.15% | +1.15% |
| PWH | PWR Holdings | 9.46% | +1.12% | +1.36% |
| MP1 | Megaport | 3.22% | +0.92% | +1.00% |
| TLX | Telix Pharmaceuticals | 6.06% | +0.77% | +0.47% |
| PEN | Peninsula Energy | 5.92% | +0.73% | +0.73% |
| NXL | NUIX | 3.63% | +0.62% | +0.99% |
Key Insights
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IPH Limited: Short interest surged from around 1.5% to 4.80% after disappointing FY25 earnings on August 21, amidst concerns about dwindling market share and a slow recovery in Asia, although analysts suggest the company’s valuation remains attractive.
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Monash IVF Group: The short interest rose significantly from approximately 5% to over 7% following FY25 results that met expectations but missed on FY26 NPAT guidance, which alarmed investors given recent operational challenges.
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Reliance Worldwide: The stock fell 6.7% post-results as ongoing market pressures were projected to persist into FY26, leading to a cautious outlook.
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Inghams Group: The company saw a drastic 20% drop in stock value on August 22 after failing to meet revenue and profit expectations, with management hinting at further earnings decline in FY26.
- Bottom Line: Short sellers appear to gravitate towards firms that have significantly underperformed or missed market forecasts, particularly those announcing poor future guidance.
Most Covered Stocks
| Ticker | Company | Short % | Week-on-Week Change | Month-on-Month Change |
|---|---|---|---|---|
| CUV | Clinuvel Pharmaceuticals | 5.30% | -2.79% | -0.08% |
| NVX | Novonix | 2.97% | -1.88% | -1.49% |
| ARU | Arafura Rare Earths | 1.81% | -1.47% | -1.14% |
| TPW | Temple & Webster Group | 1.28% | -1.40% | -1.15% |
| IGO | IGO Limited | 4.07% | -1.37% | -3.05% |
Observations
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Notable short covering has emerged among stocks perceived as speculative and unprofitable, with companies like Clinuvel and Novonix showing divergent performance trends.
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Moderate short covering was noted among firms that performed well during the reporting season, possibly indicating a reshaping of short positions.
- Some surprising short covering has occurred among companies that underwhelmed in their recent earnings, hinting at a complex market response amid current economic headwinds.
In summary, the current landscape of ASX short selling reveals distinct patterns, with many firms facing increased scrutiny and shifting trader sentiments. Investors should remain vigilant in this dynamic environment.
