The ASX's Short Seller Series: A Week of Relatively Unchanged Short Interest
The short interest data for the ASX's most heavily shorted stocks reveals a week of relative calm, with no major changes among the top names and limited corporate newsflow to drive significant short covering or increased short interest. This week's analysis focuses on the top 10 most shorted stocks, the biggest risers, and the fallers, offering a comprehensive view of the market's short-selling dynamics.
The Top 10 Most Shorted Stocks
The top 10 most shorted stocks on the ASX, as of the week ending June 5, 2026, are as follows:
- Lotus Resources (LOT)
- Short %: 19.94%
- Week-on-Week Change: 0.04%
- Month-on-Month Change: 3.93%
- Telix Pharmaceuticals (TLX)
- Short %: 14.80%
- Week-on-Week Change: -0.28%
- Month-on-Month Change: -0.47%
- Domino's Pizza (DMP)
- Short %: 14.80%
- Week-on-Week Change: -0.44%
- Month-on-Month Change: -0.75%
- Boss Energy (BOE)
- Short %: 13.98%
- Week-on-Week Change: -0.02%
- Month-on-Month Change: 0.72%
- Guzman Y Gomez (GYG)
- Short %: 12.69%
- Week-on-Week Change: 0.19%
- Month-on-Month Change: -1.18%
- Treasury Wine Estates (TWE)
- Short %: 12.63%
- Week-on-Week Change: -0.30%
- Month-on-Month Change: -0.22%
- Droneshield (DRO)
- Short %: 12.34%
- Week-on-Week Change: 0.93%
- Month-on-Month Change: 1.25%
- CAR Group (CAR)
- Short %: 11.78%
- Week-on-Week Change: 0.60%
- Month-on-Month Change: 1.08%
- Flight Centre Travel Group (FLT)
- Short %: 11.20%
- Week-on-Week Change: 0.43%
- Month-on-Month Change: 0.31%
- 4DMedical (4DX)
- Short %: 11.09%
- Week-on-Week Change: 0.54%
- Month-on-Month Change: 4.54%
Rising Shorts
Among the stocks experiencing a rise in short interest, DroneShield stands out, with its short interest ticking up to 12.34%, though still below its record of 12.66% set on April 13. The company's newsflow has been relatively light, with a $24.9 million contract with the US Department of War on June 2 and a Q1 result on April 22. Shorters remain focused on richly valued names like Temple & Webster, Pro Medicus, CAR Group, and 4DMedical.
Most Covered Stocks
In contrast, the most covered stocks show clear pullbacks in short interest across various sectors, including lithium, copper, pathology, and healthcare/biotech. This suggests a shift in investor sentiment or a reduction in short positions as these stocks may be seen as overvalued or less attractive.
Commentary and Analysis
This week's data highlights a relatively uneventful period for short interest, with no major changes among the most-shorted names. This could be attributed to a lack of significant corporate newsflow or a general stability in market conditions. However, the rise in short interest for DroneShield and the continued focus on richly valued names like Temple & Webster and Pro Medicus suggest that short sellers are still active and looking for opportunities.
The pullback in short interest across sectors like lithium, copper, and healthcare/biotech could indicate a shift in investor sentiment or a strategic move by short sellers to cover positions in these areas. It's important to note that short interest data is four days behind, and reporting is not mandatory until three business days after the trade, which may influence the timing of these changes.
In my opinion, this week's data provides a snapshot of the market's short-selling dynamics, with a focus on the top 10 most shorted stocks and the sectors experiencing changes in short interest. It's a reminder that short selling is a complex and dynamic aspect of the market, influenced by a variety of factors, including corporate newsflow, investor sentiment, and market conditions.
As an analyst, I find it fascinating to see how short interest data can provide insights into market sentiment and investor behavior. However, it's important to remember that short interest is just one piece of the puzzle and should be considered alongside other market indicators and fundamental analysis.
