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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) continues to be the most shorted ASX share with short interest of 17.2%. This is an increase week on week. Concerns over the ramp up of the uranium miner's Langer Heinrich Mine project could be behind this.
- Boss Energy Ltd (ASX: BOE) has seen its short interest rebound to 16.3%. This uranium miner's shares crashed deep into the red last month after its guidance for FY 2026 fell materially short of expectations. Short sellers don't appear to believe the declines are over.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest jump again to 16%. There are concerns that increased supply from Africa will hold down lithium prices for longer than expected.
- Liontown Resources Ltd (ASX: LTR) has short interest of 13.1%, which is up week on week. It is another lithium miner that short sellers expect to struggle in the current environment.
- Mineral Resources Ltd (ASX: MIN) has short interest of 13%, which is up week on week. Balance sheet concerns and weak commodity prices appear to be behind this.
- IDP Education Ltd (ASX: IEL) has 11.7% of its shares held short, which is down week on week. Tough trading conditions have been weighing heavily on this language testing and student placement company's performance.
- Lifestyle Communities Ltd (ASX: LIC) has seen its short interest ease to 11.7%. This retirement living company's shares have been sold off this year after the Victorian Civil and Administrative Tribunal ruled against it.
- Silex Systems Ltd (ASX: SLX) has seen its short interest remain flat at 11.2%. Short sellers may believe that this uranium enrichment technology company's pivotal TRL-6 demonstration will be a flop.
- Polynovo Ltd (ASX: PNV) has 11% of its shares held short, which is up week on week. Valuation concerns appear to be behind this short interest.
- Corporate Travel Management Ltd (ASX: CTD) has short interest of 10.1%, which is flat week on week. There are concerns that trading conditions could be particularly tough due to trade tariff uncertainty.
