Endeavour Group has seen its share price consistently decline over the past year, a trend that appears to be attracting increased attention from short sellers. This isn't just a market correction; it looks like a deliberate accumulation of bearish bets.
While Endeavour reported a 3% rise in Q3 FY26 sales for both its retail and hotels segments 1, the broader market sentiment remains cautious. Shares recently crashed to multi-year lows [ref-2], with Motley Fool noting they were near record lows in March [ref-3]. This follows an interim dividend reduction 4, which saw the stock drop 5.1% after the announcement [ref-5]. More recently, the company's "cost reset strategy" 6 has garnered attention, but the market's reaction remains to be seen.
The short position in EDV currently sits at 9.50%, a notable increase from the 90-day average of 7.27%. This represents a 2.24% jump in short interest over three months, with the position reaching a 90-day peak of 9.66%. The 30-day short slope of 0.0639% per day indicates a persistent build-up. Over the past year, the share price has fallen 24.7%, including a 19.8% drop in the last three months, showing a moderate negative correlation of -0.365 with short interest. This 9.50% short is significantly higher than the peer sector average of 2.05%. Data is ASIC T+4, so the figure is from last Friday, not yesterday.
With the short position nearing double digits and the share price continuing its downward trajectory, the market's scepticism towards Endeavour Group appears entrenched.