Lotus Resources has spent the last three months in a deep red corridor, shedding 57.6% of its market value. But as the uranium developer's share price bottomed at 28 cents, the short sellers who fuelled the slide began quietly booking their profits.
The retreat coincides with a flurry of insider buying. In late August 2026, directors G Bittar 1, M Bowen 23, L Heywood 4, and S Hay 5 executed multiple on-market purchases to prop up the register. This executive confidence arrived alongside a massive reshuffle of substantial institutional holders throughout September 678. Operationally, the company had targeted steady-state production of 2.4Mlbs per annum by March 2026 R9 and first revenue in the first half of calendar 2026 R10.
The short position on LOT has retreated from its 90-day peak of 24.02% down to 15.64%. That 8.38 percentage point drop represents a significant block of covering, bringing short interest well below the 90-day average of 18.98%. With a 30-day price-to-short correlation of -0.209, the unwinding of these positions has provided a soft floor for the stock after a punishing six-month decline of 81.0%.
With shorts covering and directors buying, the immediate pressure on Lotus has eased. Whether the ramp-up the company laid out for 2026 R10 is now producing revenue will dictate if this floor holds.