Once a week, I like to take a look at ASIC's short position report to see which ASX shares are attracting the most attention from short sellers.
High short interest can indicate that investors are concerned about a company's outlook, although there can be other reasons for taking short positions.
With that in mind, here are the 10 most shorted ASX shares this week, according to ASIC.
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The top 10 most shorted ASX shares
- PLS Group Ltd (ASX: PLS) remains the most shorted ASX share with short interest of 17.9%. This is up from 16.8% last week. Short sellers may be concerned about the lithium producer's exposure to volatile commodity prices and the substantial investment required for its P2000 expansion.
- Lotus Resources Ltd (ASX: LOT) has short interest of 16.6%. This is down slightly week on week. Investors may be wary of the operational risks associated with ramping up production at its Kayelekera uranium mine in Malawi.
- DroneShield Ltd (ASX: DRO) has seen its short interest ease to 15.9%. This could reflect concerns about the counter-drone technology company's valuation, the sustainability of its rapid growth, and the ongoing ASIC investigation.
- NEXTDC Ltd (ASX: NXT) has entered the top 10 with short interest of 15.8%. Short sellers may be concerned about delays to electricity infrastructure at its M3 Melbourne data centre. These have forced the company to downgrade its FY 2027 earnings guidance.
- Paladin Energy Ltd (ASX: PDN) has short interest of 14.95%. This is up from 14.5% last week. The uranium producer's weaker recent production performance and higher operating costs at its Langer Heinrich mine could be weighing on sentiment.
- Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest rise to 14.4%. Short sellers may be concerned about rare earth price volatility and the risks associated with its proposed acquisition of Meteoric Resources Ltd (ASX: MEI).
- Vulcan Energy Resources Ltd (ASX: VUL) has short interest of 13.8%. This is up from 13% a week ago. The substantial investment and execution risks associated with developing its Lionheart lithium project in Germany could be attracting bearish investors.
- Zip Co Ltd (ASX: ZIP) has seen its short interest decline to 13.6%. It looks like concerns about rising bad debts and the impact of a recent fraud incident on its US operations are behind the significant short interest in this buy now, pay later provider.
- Boss Energy Ltd (ASX: BOE) has short interest of 13.3%. This is down from 14% last week. Short sellers could be concerned about production costs and the operational risks associated with transitioning to a new wellfield design at its Honeymoon uranium mine.
- IperionX Ltd (ASX: IPX) rounds out the top 10 with short interest of 12.6%. This is down from 12.9% last week. Its ambitious titanium production expansion plans and the challenges of scaling operations to commercial profitability may be attracting short sellers.
