EQNR: Short Sellers Exit as Options Hedging Spikes

Three distinct signals aligned on EQNR over the past 48 hours. Short interest fell sharply. Borrow costs rose. The put/call ratio hit a 52-week extreme. Together, they paint an unusual picture for the Norwegian energy major.

Shorts Exit at Record Pace

Short interest dropped 20.6% over the past week to 19.4M shares. That is the steepest weekly decline since late June. Just one month ago, shorts held roughly 24.4M shares.

The single-session drop on July 23 was the sharpest on record. Shares fell from 24.4M to 18.9M overnight — a 22% reduction in one day.

Despite the scale of the exit, the borrow market remains open. Availability sits at 95.9%, meaning roughly equal shares are available to borrow versus those already borrowed. There is no supply squeeze driving this — shorts are choosing to close positions.

Borrow Costs Rise Against the Tide

The paradox: as shorts leave, borrow costs are climbing. Cost to borrow rose to 1.64% on July 28 — up 52% week-on-week.

That is still a low absolute level. One month ago CTB stood at 1.86%, so the current reading is not a new high. But the direction is notable. Fewer shorts, yet tighter pricing, suggests the remaining short book is concentrating in harder-to-borrow pockets.

Options Signal a Shift in Sentiment

The put/call ratio hit 0.77 on July 28 — the highest in 52 weeks, and 2.43 standard deviations above the 20-day mean of 0.59.

That sounds bearish. But in context, the 52-week range runs from 0.49 to 1.62. At 0.77, the ratio is elevated relative to recent norms but far from extreme on an absolute basis.

The jump from a 20-day mean of 0.59 is meaningful. It suggests options participants are adding protection — or positioning for a move — at the same moment short sellers are covering.

Valuation and Earnings Context

EQNR trades at a PE of 8.98 and EV/EBITDA of 2.32. The dividend score ranks at the 86th percentile. The stock is up 23% over the past month.

Q2 2026 earnings landed on July 22, with a 9% single-day move. Next earnings are not due until October 28.

TD Cowen lowered its price target from $42 to $37 on June 29, maintaining a Hold. The analyst consensus mean target stands at $34.74 — below the current price of $38.27.

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• Short interest: 19.4M shares (Jul 28), down 20.6% in one week
• Cost to borrow: 1.64%, up 52% week-on-week
• Availability: 95.9% — lending market remains open
• Put/call ratio: 0.77, z-score +2.43 vs 20-day mean
• Price: $38.27, up 23% over one month
• Next earnings: October 28, 2026