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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) continues its long run as the most shorted ASX share despite its short interest easing to 20.4%. This uranium producer has been targeted due to concerns over its production outlook beyond 2026.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest jump to 17.4%. Short sellers remain undeterred by speculation that the pizza chain operator could be a takeover target.
- Pilbara Minerals Ltd (ASX: PLS) has short interest of 14.7%, which is down week on week again. This lithium miner has been targeted due to concerns over an oversupply of lithium in the near term.
- Paladin Energy Ltd (ASX: PDN) has short interest of 13.7%, which is up week on week. Short sellers may believe there will be production ramp up issues.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.5%, which is down slightly since last week. This appears to be due to valuation concerns and its subdued start to life in the United States market.
- IDP Education Ltd (ASX: IEL) has 12.2% of its shares held short, which is up week on week. The language testing and student placement company's shares have been under significant pressure due to unfavourable student visa changes.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.7%, which is up since last week. There are concerns that this travel agent giant could be facing structural headwinds.
- PWR Holdings Ltd (ASX: PWH) has short interest of 10.7%, which is up week on week. This motorsport products company is going through a transitional period, which is weighing on its performance.
- Polynovo Ltd (ASX: PNV) has short interest of 10.5%, which is up since last week. This could be due to the medical device company's shares trading on an elevated forward earnings multiple.
- Telix Pharmaceuticals Ltd (ASX: TLX) is a new entry in the top ten with short interest of 10.2%. This may have been driven by delays with or doubts over product approvals.
