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:
- Paladin Energy Ltd (ASX: PDN) remains the most shorted ASX share despite its short interest easing to 16.4%. This appears to have been driven by concerns over the ramp up of the uranium miner's Langer Heinrich Mine project.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest jump to 14.5%. Short sellers appear to believe that increased supply from Africa will weigh on lithium prices and profitability in the industry for some time to come.
- Boss Energy Ltd (ASX: BOE) has seen its short interest ease to 14.1%. It is another uranium miner that short sellers have been targeting. Short sellers will be pleased to see its shares crash 40% today following the release of its quarterly update.
- Mineral Resources Ltd (ASX: MIN) has short interest of 13.5%, which is down week on week. Weak commodity prices and concerns over the state of the miner's balance sheet appear to be behind this.
- IDP Education Ltd (ASX: IEL) has 12.3% of its shares held short, which is up week on week again. This language testing and student placement company's shares have come under significant pressure this year due to tough trading conditions.
- Lifestyle Communities Ltd (ASX: LIC) has seen its short interest rise to 11.9%. Short sellers have been increasing their positions after the Victorian Civil and Administrative Tribunal ruled against the retirement living company.
- Liontown Resources Ltd (ASX: LTR) has short interest of 11.7%, which is down week on week. It is another lithium miner that short sellers are betting heavily against.
- Silex Systems Ltd (ASX: SLX) has seen its short interest ease slightly to 11.2%. Short sellers appear to be betting against this uranium enrichment technology company's pivotal TRL-6 demonstration.
- Polynovo Ltd (ASX: PNV) has 10.8% of its shares held short, which is down week on week. Short sellers may believe that this medical device company's shares don't deserve to trade at approximately 90x estimated FY 2026 earnings.
- Corporate Travel Management Ltd (ASX: CTD) has short interest of 10.1%, which is up slightly week on week. Short sellers may believe that trade tariffs could negatively impact demand for corporate travel in the near term.
