These are the 10 most shorted ASX shares

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 after its short interest rose again to 17.6%. Short sellers are betting heavily on this uranium producer revealing costs that are significantly ahead of expectations.
• Paladin Energy Ltd (ASX: PDN) has seen its short interest rebound week on week to 15.9%. This uranium miner's shares have come under significant pressure since downgrading its production guidance and withdrawing its sales guidance.
• Pilbara Minerals Ltd (ASX: PLS) has seen its short interest rise to 14.2%. Short sellers are betting on lithium prices remaining lower for longer and weighing on this miner's profits.
• Syrah Resources Ltd (ASX: SYR) has seen its short interest rise slightly to 12.9%. At the end of last year, this graphite miner declared a force majeure at its Balama operation in Mozambique. Weak battery materials prices have also weighed on sentiment and its balance sheet.
• Mineral Resources Ltd (ASX: MIN) has short interest of 12.7%, which is up week on week. This mining and mining services company's shares have come under significant pressure due to lithium price weakness and drama in the C-suite.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 12.5%, which is up week on week again. Short sellers seem to believe that this pizza chain operator's turnaround will take longer than expected.
• IDP Education Ltd (ASX: IEL) has 12.4% of its shares held short, which is up week on week. This student placement and language testing company is expected to post a large decline in profits in FY 2025 due to unfavourable trading conditions caused by student visa changes.
• Deep Yellow Limited (ASX: DYL) has 10.6% of its shares held short, which is down week on week. This is another uranium stock that short sellers are targeting.
• Karoon Energy Ltd (ASX: KAR) has short interest of 10.6%, which is flat since last week. This energy producer recently downgraded its production guidance because of issues at its Bauna operation.
• Megaport Ltd (ASX: MP1) has short interest of 10.2%, which is up week on week. Short sellers appear to believe that Megaport will fall short of its weak guidance for FY 2025.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has positions in Domino's Pizza Enterprises and Megaport. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises, Idp Education, and Megaport. The Motley Fool Australia has recommended Domino's Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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