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) remains the most shorted ASX share by some distance after its short interest rose to 21.4%. There are concerns over its uranium production outlook beyond 2026.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 17.4%. Takeover speculation has put a rocket under this pizza chain operator's shares this month, much to the dismay of short sellers.
- Pilbara Minerals Ltd (ASX: PLS) has short interest of 14.4%, which is down week on week again. This may be due to concerns over an oversupply of lithium in the near term, which could weigh on profitability.
- Polynovo Ltd (ASX: PNV) has short interest of 12%, which is up sharply since last week. This medical device company's shares are trading on a lofty earnings multiple. Short sellers don't appear to believe this premium valuation is deserved.
- Paladin Energy Ltd (ASX: PDN) has short interest of 12%, which is down week on week. Short sellers may believe there will be production ramp-up issues for this uranium miner.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 11.8%, which is down since last week. This could also be due to valuation concerns. In addition, its poor start to life in the United States market isn't helping matters.
- IDP Education Ltd (ASX: IEL) has 11.4% of its shares held short, which is down week on week. Short sellers have been very successful with this one. The language testing and student placement company's shares have crashed over the past 12 months after unfavourable student visa changes weighed on its performance.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 11%, which is up since last week. Unfortunately for short sellers, this travel agent's shares jumped last week after revealing a positive start to the year.
- PWR Holdings Ltd (ASX: PWH) has short interest of 10.9%, which is up week on week. This motorsport products company is going through a transitional period, which is weighing on its profits.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 10.4%, which is up week on week. This radiopharmaceuticals company has been hit with product approval delays this year.
