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) continues to be the most shorted share on the Australian market despite its short interest easing slightly to 17.9%. Concerns over an oversupply of lithium appears to be behind this high level of short interest.
- Boss Energy Ltd (ASX: BOE) has seen its short interest fall again to 17.3%. Short sellers have been targeting this uranium producer due to uncertainty over its production outlook beyond 2026.
- IDP Education Ltd (ASX: IEL) has 13.2% of its shares held short, which is down week on week again. Short sellers appear to believe this language testing and student placement company could have another tough year in 2026.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 12%, which is up week on week again. This struggling pizza chain operator's shares have lost half of their value this year.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 11.8%, which is up week on week again. This burrito seller's sky-high valuation may be attracting short sellers. Especially given its poor performance in the US. GYG shares trade at 129x estimated FY 2026 earnings.
- Paladin Energy Ltd (ASX: PDN) has short interest of 11.3%, which is down sharply week on week once again. Positive industry news could be why short sellers are closing positions.
- Iluka Resources Ltd (ASX: ILU) has short interest of 11.3%, which is up week on week. This may be due to weak synthetic rutile demand.
- Mineral Resources Ltd (ASX: MIN) has short interest of 10.8%, which is up week on week. Leadership concerns, weak commodity prices, and a weak balance sheet have weighed heavily on this mining stock.
- PWR Holdings Ltd (ASX: PWH) has short interest of 10.4%, which is flat week on week once again. This motorsport products company is expecting another transition year in FY 2026.
- Polynovo Ltd (ASX: PNV) has 9.9% of its shares held short, which is down week on week again. Valuation concerns may be why this medical device company's shares are being targeted. Its shares trade at 64x estimated FY 2026 earnings.
