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At the start of each week, I like to look at ASIC's short position report to find out which ASX shares are being targeted by short sellers.
That's because I believe it is 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:
- Lotus Resources Ltd (ASX: LOT) continues to be the most shorted ASX share after its short interest increased again to 18.5%. This uranium producer's shares have come under significant pressure since the release of a very disappointing quarterly update. Lotus revealed weak production and a sizeable cash burn. There are now concerns that another capital raising will be needed later this year.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.3%. Short sellers appear to be doubting this pizza chain operator's turnaround plans.
- Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease again to 14.5%. This radiopharmaceuticals company has come under pressure after struggling to gain key US FDA approvals.
- Boss Energy Ltd (ASX: BOE) has short interest of 14%, which is down since last week. This uranium miner's uncertain production outlook beyond 2026 has weighed on sentiment.
- Treasury Wine Estates Ltd (ASX: TWE) has 13.7% of its shares held short, which is up week on week again. This wine giant's recent and encouraging trading update hasn't put off short sellers.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.6%, which is down week on week. Short sellers have been closing positions after the quick service restaurant operator's shares rocketed in response to the closure of its loss-making US operations.
- CAR Group Limited (ASX: CAR) has short interest of 11.5%, which is up since last week. This may be due to concerns that higher interest rates and rising fuel costs could weigh on the automotive market.
- Flight Centre Travel Group Ltd (ASX: FLT) has returned to the top ten with short interest of 11.4%. Short sellers may believe the Middle East conflict could weigh on this travel agent's performance.
- Zip Co Ltd (ASX: ZIP) has 11.2% of its shares held short, which is down again week on week. Short sellers may be expecting this buy now pay later provider's performance to be impacted by weak consumer spending and higher interest rates.
- Polynovo Ltd (ASX: PNV) has 11.2% of its shares held short, which is down week on week again. This medical device company's shares trade on a high PE ratio. Short sellers may believe this premium is unjustified.
