At the start of each week, I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.
This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.
With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:
- Pilbara Minerals Ltd (ASX: PLS) remains the most shorted ASX share with a short interest of 20.5%, which is down slightly week on week. Short sellers appear to be betting on lithium prices remaining under pressure for the foreseeable future.
- IDP Education Ltd (ASX: IEL) has 14.9% of its shares held short, which is up week on week once again. This seems to be due to concerns that regulatory changes to student visas will weigh heavily on this language testing and student placement company's financial performance.
- Syrah Resources Ltd (ASX: SYR) has a short interest of 14.4%, which is up week on week. Short sellers seem to believe that graphite prices will also remain under pressure for some time to come.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest jump to 10.9%. This may be due to concerns over revenue margin headwinds and consumer spending pressures.
- Liontown Resources Ltd (ASX: LTR) has seen its short interest increase slightly to 10.2%. Short sellers have increased their positions despite the lithium developer announcing debt funding for the Kathleen Valley Lithium Project.
- Core Lithium Ltd (ASX: CXO) has a short interest of 8.3%, which is down slightly week on week. Short sellers aren't letting up on this lithium miner despite its shares crashing 82% over the last 12 months.
- Genesis Minerals Ltd (ASX: GMD) has seen its short interest ease again to 7.5%. It seems that some short sellers are closing positions after the gold price hit record highs.
- Lifestyle Communities Ltd (ASX: LIC) is a new entry in the top ten with a short interest of 7.3%. This retirement communities company has been struggling with subdued settlement rates in 2024.
- Sayona Mining Ltd (ASX: SYA) has a short interest of 7.2%, which is flat week on week. This lithium miner has been battling low lithium prices and its shares are down over 80% since this time last year. Short sellers seem to believe there are more declines to come.
- Weebit Nano Ltd (ASX: WBT) has 7.2% of its shares held short, which is flat week on week. This semiconductor company has an eye-watering valuation despite generating next to no revenue.
