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) is the Australian share market's most shorted share still after its short interest rose to 20%. This appears to have been driven by concerns over the uranium miner's production outlook beyond 2026.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest jump to 18.2%. Short sellers have been loading back up on the lithium miner's shares after one of China's largest lithium mines restarted production this month after resolving permitting issues.
- Paladin Energy Ltd (ASX: PDN) has short interest of 16.3%, which is down week on week. Last week, this uranium miner's shares raced higher thanks to positive industry news, which offset a capital raising.
- IDP Education Ltd (ASX: IEL) has 14.4% of its shares held short, which is up week on week again. Short sellers don't appear to believe that the worst is behind this language testing and student placement company.
- Polynovo Ltd (ASX: PNV) has 12.4% of its shares held short, which is up week on week. Short sellers aren't closing positions despite the medical device company announcing big news out of the US.
- Mineral Resources Ltd (ASX: MIN) has short interest of 11%, which is down week on week. Short sellers appear to be targeting this mining and mining services company due to leadership concerns, weak commodity prices, and its precarious balance sheet.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 10.7%, which is up sharply week on week. It seems that short sellers believe things will get worse before they get better for this pizza seller.
- PWR Holdings Ltd (ASX: PWH) has short interest of 10.4%, which is flat since last week. This motorsport products company warned that it is expecting another transition year in FY 2026.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 10.3%, which is up week on week. There are concerns over the burrito seller's shares prospects in the US market following a period of underperformance.
- Iluka Resources Ltd (ASX: ILU) has entered the top ten with short interest of 10%. Weak synthetic rutile demand could be behind this.
