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) continues its long run as the most shorted ASX share with short interest 17.3%, which is down week on week once again. Short sellers have been going after Pilbara Minerals and other lithium stocks due to falling battery material prices.
- Boss Energy Ltd (ASX: BOE) has 14.6% of its share held short, which is down since last week. It is one of a number of uranium stocks that short sellers have been targeting. They appear to believe that prices won't be as strong as expected and see potential operational and ramp up risks.
- Paladin Energy Ltd (ASX: PDN) has short interest of 14.2%, which is down week on week. Short sellers appear to have been closing some positions to lock in gains after the uranium miner's shares crashed deep into the red. This was driven by a downgrade to its production guidance and the scrapping of its sales guidance.
- IDP Education Ltd (ASX: IEL) has 14.2% of its shares held short, which is down week on week again. Short sellers will have been pleased to see this language testing and student placement company's shares hit a multi-year low last week amid tough trading conditions due to student visa changes.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest rise slightly since last week to 13.3%. This graphite miner has been forced to suspend production intermittently to conserve cash due to low graphite prices.
- Mineral Resources Ltd (ASX: MIN) has short interest of 10.5%, which is up week on week. This mining and mining services company's shares have come under significant pressure recently amid allegations over the conduct of its founder and CEO, Chris Ellison. He has since announced plans to step down.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 10.1%, which is up week on week again. This pizza chain operator announced that its long-serving CEO is stepping down earlier this month. Though, it is worth noting that some investors believe a change is due after Domino's abject performance in recent years.
- Deep Yellow Limited (ASX: DYL) has 9.9% of its shares held short, which is flat week on week once again. This is another uranium stock that short sellers have successfully targeted in 2024.
- Adriatic Metals (ASX: ADT) is a new entry in the top ten with short interest of 9.3%. It is a precious and base metals developer that is advancing the Vares Silver Project in Bosnia and Herzegovina.
- Liontown Resources Ltd (ASX: LTR) has 9.2% of its shares held short, which is down week on week again. Some short sellers may be closing positions after the lithium miner's shares dropped 54% in 2024 due to weak lithium prices.
