The tension noted in our July 8 article has snapped — decisively in the bulls' favour. Short sellers who spent weeks piling into DHT Holdings have reversed course sharply, shedding 23% of their position in a single week.
Short interest has collapsed from roughly 10.2 million shares to 7.8 million. As a percentage of the free float, that is 4.86% — down from 6.4% just days ago. This reverses the bulk of the month-long rebuilding campaign that was the central story last week.
The stock provided the immediate catalyst. DHT rose 3.4% on the week and 4.9% on the day to $17.76. The whole tanker complex caught a bid: peers FRO, TNK, INSW and STNG all gained 4–9% on the week. Shorts caught in a sector rally had little reason to hold.
The borrow market is now extremely loose — arguably the loosest it has been all year. Availability stands at 6,163%, up 43% on the week. That means there are roughly 62 shares available to lend for every share currently borrowed. The 52-week minimum availability was 650% — today's reading is nearly ten times that floor.
Cost to borrow sits at 0.42%. There is no friction whatsoever in exiting or re-entering a short position here. Shorts face zero squeeze mechanics.
The put/call ratio that briefly spiked to 0.52 — flagged in the July 9 pulse — has since retreated to 0.36. That is below the 20-day mean of 0.40, with a z-score of -1.04. Options positioning has shifted back toward calls. The volatility spike was short-lived.
The ORTEX short score has dropped to 37.7, down from 42.4 at the start of the month. That move reflects the easing of lending-market pressure and the falling short interest simultaneously.
The prior article flagged a notable disconnect: bears were building while the stock climbed, but the lending market showed no stress. That disconnect has now resolved. The bears have cut and run. Short interest is back near the early-June lows of roughly 7.8 million shares, and the borrow market has loosened further still.
Earnings are next on August 7. The mean analyst price target sits at $20.20, roughly 14% above the current price. BlackRock added 1.6 million shares in the latest reported quarter — the largest institutional move among top holders.
See the live data behind this article on ORTEX.
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