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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) has returned to the top of the list after its short interest jumped to 19.1%. Short sellers have been going after this uranium producer due to uncertainty over its production outlook beyond 2026.
- Pilbara Minerals Ltd (ASX: PLS) has short interest of 15.6%. This has been driven by concerns over an oversupply of lithium, which hasn't been helped by the reopening of a major mine in China.
- IDP Education Ltd (ASX: IEL) has 12.7% of its shares held short, which is down week on week again. This language testing and student placement company has been struggling because of visa changes.
- Paladin Energy Ltd (ASX: PDN) has short interest of 12.3%, which is up week on week. Short sellers appear to be loading up on uranium stocks again.
- Iluka Resources Ltd (ASX: ILU) has short interest of 11.9%, which is up week on week again. This may have been driven by weak synthetic rutile demand.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.5%, which is down week on week. Short sellers appear to believe that this pizza chain operator isn't over the worst of its problems.
- Mineral Resources Ltd (ASX: MIN) has short interest of 10.6%, which is down on week. This mining and mining services company is battling leadership concerns, weak commodity prices, and a precarious balance sheet.
- PWR Holdings Ltd (ASX: PWH) has short interest of 10.1%, which is down week on week. This motorsport products company has warned that FY 2026 is likely to be another transition year.
- Flight Centre Travel Group Ltd (ASX: FLT) has entered the top ten with short interest of 9.7%. It seems that some short sellers believe that this travel agent giant's recovery will take longer than expected.
- Polynovo Ltd (ASX: PNV) has 9.6% 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 by short sellers.
