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) retains the top spot for another week with short interest of 21.7%. This is up slightly week on week. Short sellers are betting on the uranium miner's production beyond 2026 falling short of expectations.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease again to 14.4%. Short sellers have been closing positions in a hurry after this pizza chain operator was the subject of takeover speculation.
- Paladin Energy Ltd (ASX: PDN) has short interest of 12.8%, which is up since last week. This may be due to production ramp-up concerns.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.3%, which is up since last week. Short sellers have been building positions possibly on valuation concerns and in response to the burrito seller's poor start to life in the United States market.
- IDP Education Ltd (ASX: IEL) has 11.6% of its shares held short, which is down week on week. This appears to be due to concerns that this language testing and student placement company will continue to underperform due to unfavourable student visa changes.
- Pilbara Minerals Ltd (ASX: PLS) has short interest of 10.9%, which is down week on week again. An oversupply of lithium has weighed heavily on the industry in recent years.
- PWR Holdings Ltd (ASX: PWH) has short interest of 10.6%, which is down week on week. This motorsport products company is going through a lengthy transitional period that is weighing on its profits.
- Telix Pharmaceuticals Ltd (ASX: TLX) shares are back in the top ten with short interest of 10.4%. This biotech company has been hit with FDA approval delays this year.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 9.9%, which is down since last week. Short sellers may have been closing positions after the travel agent revealed a positive start to FY 2026.
- Polynovo Ltd (ASX: PNV) has short interest of 9.8%, which is down since last week. This medical device company's shares trade on sky-high multiples and short sellers don't appear to believe it is justified.
