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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:
- Paladin Energy Ltd (ASX: PDN) remains the most shorted ASX share after its short interest rose again week on week to 16.5%. Short sellers continue to increase their positions in the uranium miner after it downgraded its production guidance and scrapped its sales guidance.
- Boss Energy Ltd (ASX: BOE) has 16.4% of its share held short, which is up significantly since last week. Short sellers appear to believe that this uranium producer's costs will be significantly ahead of expectations in 2025.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest rise again to 13.9%. This lithium miner's shares tumbled to a multi-year low on Friday. Its shares now down 48% year to date. Short sellers are betting on lithium prices remaining lower for longer.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest ease a touch to 12.7%. This graphite miner's shares have come under pressure this month after it declared a force majeure at its Balama operation in Mozambique.
- IDP Education Ltd (ASX: IEL) has 12.4% of its shares held short, which is down week on week again. Short sellers seem to think that tough trading conditions will lead to this student placement and language testing company disappointing in FY 2025.
- Mineral Resources Ltd (ASX: MIN) has short interest of 11.9%, which is down week on week. This mining and mining services company's shares are down over 50% this year amid lithium price weakness and trouble in the C-suite.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.8%, which is up week on week again. Short sellers appear to believe that the pizza chain operator's turnaround isn't working.
- Deep Yellow Limited (ASX: DYL) has 10.8% of its shares held short, which is up week on week again. This is yet another uranium stock that short sellers are successfully targeting. Its shares are down 15% since this time last month.
- Liontown Resources Ltd (ASX: LTR) has 9.4% of its shares held short, which is down week on week. This lithium miner recently downgraded its production guidance.
- Karoon Energy Ltd (ASX: KAR) is a new entry to the top this week with short interest of 9.3%. Last week, this energy producer downgraded its production guidance due to issues at its Bauna operation.
