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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 to be the most shorted ASX share with short interest over 21.6%. This is up slightly week on week. Short sellers appear to believe that the uranium miner will disappoint with its production beyond 2026.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease again to 16.9%. Short sellers have been closing positions after this pizza chain operator was the subject of takeover speculation.
- Pilbara Minerals Ltd (ASX: PLS) has short interest of 12.8%, which is down week on week again. Many analysts believe that the lithium oversupply will be around for longer than expected.
- Paladin Energy Ltd (ASX: PDN) has short interest of 12%, which is flat since last week. Short sellers appear to be expecting production ramp-up disappointment from this uranium miner.
- IDP Education Ltd (ASX: IEL) has 11.9% of its shares held short, which is up week on week. This language testing and student placement company is struggling with unfavourable student visa changes.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 11.5%, which is down since last week. This burrito seller's poor start to life in the United States market could be weighing on sentiment.
- PWR Holdings Ltd (ASX: PWH) has short interest of 11.2%, which is up week on week. This motorsport products company's shares have come under pressure as it goes through a lengthy transitional period.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 11.1%, which is up since last week. Short sellers aren't giving up on this travel agent despite it revealing a positive start to the year.
- IPH Ltd (ASX: IPH) has joined the top ten with 10.8% of its shares held short. Weak trading conditions in the intellectual property services market could be behind this.
- Polynovo Ltd (ASX: PNV) has short interest of 10.6%, which is down since last week. Short sellers don't appear to believe this medical device company's shares deserve their premium valuation.
