Short-interest research checklist
Before drawing a conclusion from a move in short interest, work through these checks.
Check the source and date
Is this ASIC short interest or ASX gross short sales? Note the trade date before comparing it with current prices or news.
Compare with the company's history
Look at the 52-week range, then the chart. Is this reading unusual for the company?
Check whether the change persists
Compare the 7-day and 30-day changes. One report is less useful than a pattern across several dates.
Read the company announcements
Check for earnings, capital raisings, takeovers, or index changes around the reporting date. Use the original announcements.
Consider liquidity and borrowing
Check trading volume and, where available, stock-borrow information. The same short percentage can carry different risks in a thinly traded company.
Compare peers with care
Companies in the same sector may have different debt, earnings, and liquidity. A similar short percentage does not mean similar risk.
What the data cannot tell you
A high reading may include hedges or paired trades. A fall may mean a trade has ended, not that the company's outlook has improved. Short interest alone cannot tell you whether a security is cheap, expensive, or suitable for you.
Open a company from the Top 100 to check its history. For definitions, see the methodology or the ASIC and ASX comparison.