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 its run as the Australian share market's most shorted share despite its short interest easing to 18.9%. There are concerns over the uranium miner's production outlook beyond 2026.
- Paladin Energy Ltd (ASX: PDN) has short interest of 16.9%, which is down week on week again. This may be associated with risks relating to the ramp-up of its Langer Heinrich Mine.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest rise to 16.7%. The lithium miner's shares sank last week after one of China's largest lithium mines was given approval to restart after resolving permitting issues.
- IDP Education Ltd (ASX: IEL) has 14% of its shares held short, which is up slightly week on week. Short sellers aren't giving up on this language testing and student placement company and appear to believe the worst is still not behind it.
- Polynovo Ltd (ASX: PNV) has 12.3% of its shares held short, which is up week on week. This is despite the medical device company's shares surging this month thanks to big news out of the US.
- Mineral Resources Ltd (ASX: MIN) has short interest of 11.4%, which is down week on week. This mining and mining services company's precarious balance sheet appears to be behind this.
- PWR Holdings Ltd (ASX: PWH) has short interest of 10.4%, which is up week on week. This motorsport products company is expecting another transition year in FY 2026.
- Corporate Travel Management Ltd (ASX: CTD) has short interest of 9.8%, which is flat week on week. This corporate travel specialist's shares have been out of action for almost a month while it makes "a material correction" to the company's previous financial statements.
- Guzman Y Gomez Ltd (ASX: GYG) has entered the top ten with short interest of 9.8%. Short sellers may believe that too much future growth is being baked into the burrito seller's shares. Especially given how much of this relies on Guzman Y Gomez cracking the US market, which is far from guaranteed.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 9.7%, which is down week on week. Short sellers appear to believe that things will get worse before they get better for the pizza seller.
