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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:
- Domino's Pizza Enterprises Ltd (ASX: DMP) remains the most shorted ASX share despite its short interest easing to 15.2%. Short sellers appear to be doubting that the struggling pizza chain operator's turnaround strategy will succeed.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 14.5%, which is down since last week. This radiopharmaceuticals company has faced delays gaining FDA approval for a couple of its therapies recently. Short sellers don't appear to believe a change is coming in 2026.
- Polynovo Ltd (ASX: PNV) has short interest of 14.2%, which is up again since last week. This may have been driven by valuation concerns with the medical device company's shares trading on high multiples.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is up week on week. This burrito seller's shares have been under significant pressure since the release of its results last month which revealed that it is struggling in the United States market. This was supposed to be its largest growth opportunity.
- Boss Energy Ltd (ASX: BOE) has short interest of 12%, which is up since last week. There are concerns over this uranium miner's production outlook beyond 2026.
- Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest fall meaningfully to 11.9%. It has been a tough period for this wine giant, which is battling consumer spending pressures and distributor disruption.
- Lotus Resources Ltd (ASX: LOT) has entered the top ten with short interest of 11.1%. It is one of a number of ASX uranium stocks being targeted by short sellers.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.9%, which is up week on week again. Short sellers may believe the Middle East conflict will impact travel markets.
- DroneShield Ltd (ASX: DRO) has entered the top ten with 10.8% of its shares held short. Short sellers may believe this counter-drone technology company's shares are overvalued after surging over the past 12 months.
- IDP Education Ltd (ASX: IEL) has 10.2% of its shares held short, which is down week on week once again. Short sellers have been targeting this student placement and language testing company due to changes to visa rules in key markets.
