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Short & Caught: Pilbara Minerals is ASX’s most shorted stock as lithium prices fall 60pc YoY
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- Pilbara Minerals now most shorted ASX stock as price of lithium falls drop 60% YoY
- Strike Energy has a short position of 10% after last week being dropped from S&P/ASX200
- IPD Education second most shorted stock as visa rules for students tighten in key markets
Before we delve into the ASX’s most shorted, just a quick reminder right off the bat here about what exactly short selling is.
Short sellers effectively borrow a stock from a broker, and go wager it (sell it) on the open market. The plan is to then buy the same stock back later after it’s made a hefty drop in price. That done, the short seller buys it back at the lower price and returns it to the lender.
The difference between the sell price and the buy price is the short seller’s profit. Investors are in effect betting they will fall.
Because shorting is restricted under Australian law (and because it’s an all or nothing bloodsport) any substantial shorting of stocks is worth knowing about, even if you only trade long.
And perhaps there’s method in the madness.
Stockhead has utilised the number of short positions as a percentage (5% or more) of total shares on issue according to ASIC’s Short Position Report.
The most shorted stocks on ASX
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Company | Short positions | Shares on issue | % short positions |
|---|---|---|---|---|
| PILBARA MIN LTD ORDINARY | PLS | 603,172,131 | 3,011,245,080 | 20% |
| IDP EDUCATION LTD ORDINARY | IEL | 39,104,402 | 278,336,211 | 14% |
| SYRAH RESOURCES ORDINARY | SYR | 132,385,684 | 1,034,891,766 | 13% |
| LYNAS RARE EARTHS ORDINARY | LYC | 102,763,353 | 934,718,185 | 11% |
| LIONTOWN RESOURCES ORDINARY | LTR | 266,042,805 | 2,425,004,880 | 11% |
| PALADIN ENERGY LTD ORDINARY | PDN | 31,269,169 | 298,979,523 | 10% |
| CHALICE MINING LTD ORDINARY | CHN | 40,188,625 | 389,026,788 | 10% |
| CETTIRE ORDINARY | CTT | 39,283,498 | 381,238,220 | 10% |
| STRIKE ENERGY LTD ORDINARY | STX | 290,379,892 | 2,865,373,749 | 10% |
| SAYONA MINING LTD ORDINARY | SYA | 1,003,784,645 | 10,293,296,014 | 10% |
| BOSS ENERGY LTD ORDINARY | BOE | 38,538,397 | 409,688,058 | 9% |
| MINERAL RESOURCES. ORDINARY | MIN | 17,878,296 | 196,518,604 | 9% |
| DEEP YELLOW LIMITED ORDINARY | DYL | 81,753,646 | 969,457,541 | 8% |
| LOTUS RESOURCES LTD ORDINARY | LOT | 151,074,563 | 1,833,426,502 | 8% |
| AU CLINICAL LABS ORDINARY | ACL | 14,936,659 | 201,834,015 | 7% |
| SEEK LIMITED ORDINARY | SEK | 25,305,427 | 356,820,190 | 7% |
| ADRIATIC METALS CDI 1:1 | ADT | 19,454,065 | 279,924,969 | 7% |
| GENESIS MINERALS ORDINARY | GMD | 77,147,110 | 1,128,297,058 | 7% |
| SANDFIRE RESOURCES ORDINARY | SFR | 30,935,037 | 457,445,745 | 7% |
| KAROON ENERGY LTD ORDINARY | KAR | 53,346,125 | 802,170,681 | 7% |
| FLIGHT CENTRE TRAVEL ORDINARY | FLT | 14,436,798 | 221,842,149 | 7% |
| NUFARM LIMITED ORDINARY | NUF | 24,683,450 | 382,307,128 | 6% |
| OMNI BRIDGEWAY LTD ORD US PROHIBITED | OBL | 17,615,370 | 282,584,186 | 6% |
| WEEBIT NANO LTD ORDINARY | WBT | 11,572,578 | 188,916,529 | 6% |
| LIFESTYLE COMMUNIT. ORDINARY | LIC | 7,402,421 | 121,740,054 | 6% |
| CLINUVEL PHARMACEUT. ORDINARY | CUV | 2,977,630 | 50,077,780 | 6% |
| BELLEVUE GOLD LTD ORDINARY | BGL | 73,617,604 | 1,279,998,987 | 6% |
| DEXUS UNITS STAPLED | DXS | 61,563,199 | 1,075,565,246 | 6% |
| WEBJET LIMITED ORDINARY | WEB | 22,129,306 | 391,152,405 | 6% |
| NANOSONICS LIMITED ORDINARY | NAN | 16,993,024 | 302,997,848 | 6% |
| IMUGENE LIMITED ORDINARY | IMU | 416,264,849 | 7,437,246,713 | 6% |
| CORE LITHIUM ORDINARY | CXO | 115,988,791 | 2,136,935,544 | 5% |
| RIO TINTO LIMITED ORDINARY | RIO | 19,856,718 | 371,216,214 | 5% |
| NOVONIX LIMITED ORDINARY | NVX | 25,957,058 | 493,667,797 | 5% |
| DOMINO PIZZA ENTERPR ORDINARY | DMP | 4,706,800 | 90,930,709 | 5% |
| SIGMA HEALTH LTD ORDINARY | SIG | 83,972,336 | 1,631,866,135 | 5% |
| INTEGRAL DIAGNOSTICS ORDINARY | IDX | 11,932,463 | 233,961,997 | 5% |
| VULCAN ENERGY ORDINARY | VUL | 9,574,064 | 188,188,571 | 5% |
| BANK OF QUEENSLAND. ORDINARY | BOQ | 33,463,653 | 661,469,455 | 5% |
| THE A2 MILK COMPANY ORDINARY | A2M | 36,423,201 | 724,019,118 | 5% |
| THE STAR ENT GRP ORDINARY | SGR | 141,134,171 | 2,868,680,877 | 5% |
| INSIGNIA FINANCIAL ORDINARY | IFL | 32,428,260 | 670,726,143 | 5% |
| CALIX LIMITED ORDINARY | CXL | 8,773,652 | 181,606,255 | 5% |
| CORP TRAVEL LIMITED ORDINARY | CTD | 7,060,576 | 146,325,746 | 5% |
| SILEX SYSTEMS ORDINARY | SLX | 11,015,543 | 237,241,524 | 5% |
| ACCENT GROUP LTD ORDINARY | AX1 | 26,110,923 | 565,998,979 | 5% |
| 29METALSLIMITED ORDINARY | 29M | 32,378,118 | 701,862,508 | 5% |
Pilbara Minerals – most shorted ASX stock
In September 2023 we wrote that Pilbara Minerals (ASX:PLS) was the most shorted stock on the ASX with a short position of 11%. One year on and the lithium producer has taken out the unfortunate trophy again as the ASX’s most shorted stock with its short position now up at 20%.
A year ago short sellers were betting lithium prices could fall, seeing surpluses for the battery mineral as more lithium mines came into production around the world.
One year on and lithium prices have fulfilled those dire prophecies, tracking downwards from their 2022 peaks and more to drop 60% YoY.
But in some good news for PLS its share price has risen ~20% in the past week, putting pressure on short sellers to cover their positions. Lithium stocks were given a boost after reports last week Chinese electric vehicle battery maker CATL had suspended production from its Jianxiawo lepidolite mine in Jianxi, around 8% of Chinese domestic LCE supply.
Last month, PLS announced a scrip takeover of Latin Resources (ASX:LRS), giving it ownership of the Salinas lithium project in Brazil, which has a resource estimate of 77.7 million tonnes at 1.24% lithium oxide, and it still has plenty of cash in its pockets to wade out the storm of the current downturn.
READ > Kristie Batten: Brazil’s lithium potential in focus after Pilbara’s Latin takeover
Other lithium stocks including Core Lithium (ASX:CXO), Sayona Mining (ASX:SYA) and Liontown Resources (ASX:LTR) were also targeted by short sellers.
Strike Energy a target as it moves off S&P/ASX 200
Strike Energy (ASX:STX) has a short position of 10% after last week being dropped from the benchmark S&P/ASX 200 index.
Graphite miner Syrah Resources (ASX:SYR) is also a focus of short sellers with a 13% short interest as low battery material prices put pressure on the stock, while Lynas (ASX:LYC) has a short interest of 11% as weak rare earth prices continue.
Julimar project owner Chalice Mining (ASX:CHN) has also been a target of short sellers along with uranium play Paladin Energy (ASX:PDN).
Short sellers targeting IDP Education
IDP Education (ASX:IEL), which specialises in international student placement services and high-stakes English language testing, is the second most shorted stock on the ASX with a short position of 14%.
IEL also operates English language schools in Southeast Asia and organises educational events and conferences across the globe.
In their annual report to shareholders chair Peter Polson and CEO and managing director Tennealle O’Shannessy said for H1 FY24 IDP Education delivered record revenue of $579m, up 15% from H1 FY23 but has taken a hit from regulatory changes in key markets.
“During this period, we supported a record number of international students and test takers worldwide,” they said.
“Throughout the second half, regulatory changes in Australia, Canada, and the UK came into effect.”
Polson and O’Shannessy said consequently, the size of the global market of prospective international students and test takers declined.
“Responding to these market conditions, IDP’s experienced leadership team charted a clear path towards increasing our share of a subdued global market,” they said.
Key to this was restructuring our global team, resizing our cost base and reallocating resources to invest in our strategy.”
Less turbulence for Flight Centre
Flight Centre (ASX:FLT) seems to be catching a break with short sellers as the the travel stock, which was the most shorted stock on the ASX for much of 2022 and 2023, sees its position improved to 7%.
In its FY24 results FLT announced a 131% underlying profit before tax (PBT) increase to $320m and a 212% statutory PBT increase to $220m. The company said leisure profit more than doubled YOY and was at highest levels since FY14.
FY14.
FLT said it was well placed to capitalise on opportunities in a normal growth market during FY25 with strong brand network, strong balance sheet and improving margin profile.
Online travel booking giant Webjet (ASX:WEB) also remains up on the list of ASX’s most shorted stocks with its short position at 6%.
WEB is about to split its consumer operations (Webject B2C) and business operations (WebBeds) into two separate ASX-listed companies
The demerged consumer side is set to make its debut on the ASX on September 23 under the ticker WJL.
READ > Webjet’s demerged company set to list on ASX; what this means for potential investors
