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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:
- Pilbara Minerals Ltd (ASX: PLS) has become the most shorted ASX share despite its short interest easing slightly to 18.1%. News that one of China's largest lithium mines has restarted production this month after resolving permitting issues has been a big blow to the industry.
- Boss Energy Ltd (ASX: BOE) has seen its short interest fall to 18%. Concerns over the uranium miner's production outlook beyond 2026 have weighed on its shares.
- IDP Education Ltd (ASX: IEL) has 13.6% of its shares held short, which is down week on week. It seems that short sellers don't believe the worst is behind this struggling language testing and student placement company.
- Paladin Energy Ltd (ASX: PDN) has short interest of 12.2%, which is down sharply week on week. Short sellers may have been closing positions due to positive uranium industry news.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.4%, which is up week on week again. Short sellers may believe that things will get worse before they get better for this embattled pizza seller.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 11%, which is up week on week. This burrito seller's poor performance in US market and its sky high valuation may be attracting short sellers.
- Iluka Resources Ltd (ASX: ILU) has short interest of 10.4%, which is up week on week. Weak synthetic rutile demand could be why short sellers are targeting the miner.
- Mineral Resources Ltd (ASX: MIN) has short interest of 10.4%, which is down week on week. This mining and mining services company has been battling leadership concerns, weak commodity prices, and a precarious balance sheet.
- PWR Holdings Ltd (ASX: PWH) has short interest of 10.4%, which is flat week on week again. This motorsport products company has warned that it is expecting another transition year in FY 2026.
- Polynovo Ltd (ASX: PNV) has 10% of its shares held short, which is down week on week. This medical device company's shares jumped this month after announcing big news out of the US.
