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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:
- Boss Energy Ltd (ASX: BOE) continues to be the most shorted ASX share after its short interest climbed to 22.8%. This uranium producer's shares have been under significant pressure since its guidance for FY 2026 fell materially short of expectations.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest rise again to 18.5%. Concerns over the ramp up of the uranium miner's Langer Heinrich Mine could be behind this.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest remain flat at 15.1%. While lithium prices have rebounded recently, short sellers seem to believe that this will be short-lived.
- IDP Education Ltd (ASX: IEL) has 14.1% of its shares held short, which is up week on week. Later this week, this language testing and student placement company is releasing its results and is expected to post a sharp decline in profits.
- Polynovo Ltd (ASX: PNV) has 11.6% of its shares held short, which is up week on week again. Short sellers appear to believe that this medical device company's shares are overvalued at current levels. Its results are due to be released today.
- Lifestyle Communities Ltd (ASX: LIC) has seen its short interest ease slightly to 11.5%. This retirement living company has been battling tough trading conditions caused by negative media coverage and lost a major court battle.
- Mineral Resources Ltd (ASX: MIN) has short interest of 11.5%, which is down week on week again. There are concerns over the state of the miner's balance sheet and its exposure to weak commodity prices.
- Corporate Travel Management Ltd (ASX: CTD) has short interest of 9.8%, which is down week on week. This corporate travel specialist suspended its shares last week after becoming "aware that a material correction will need to be made to certain aspects of the Company's previous financial statements."
- Silex Systems Ltd (ASX: SLX) has seen its short interest tumble to 8.9%. This uranium enrichment technology company recently raised $130 million through a capital raising. Short sellers may have used this as an opportunity to buy shares to close positions.
- Cettire Ltd (ASX: CTT) has returned to the top ten with short interest of 8.7%. This online luxury products retailer has been hit hard by a downturn in the industry and import tax changes in the US. So much so, some short sellers appear to believe its business model is now broken.
