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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 its run as the most shorted ASX share after its short interest remained flat at 20%. A very disappointing quarterly update from this uranium producer has weighed heavily on sentiment.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 14.8%. Short sellers continue to target the pizza chain operator, possibly on the belief that its turnaround will take longer than hoped.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 14.8%, which is down slightly week on week. This may be due to the radiopharmaceuticals company struggling with US FDA approvals over the past 18 months.
- Boss Energy Ltd (ASX: BOE) has short interest of 14%, which is flat again week on week. The uranium miner's uncertain production outlook beyond 2026 is largely behind this.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.7%, which is up week on week. Short sellers aren't giving up on this quick service restaurant operator despite a recent rally following the closure of its loss-making US operations.
- Treasury Wine Estates Ltd (ASX: TWE) has 12.6% of its shares held short, which is down week on week. A positive investor day update from the wine giant could be behind the decline in short interest.
- DroneShield Ltd (ASX: DRO) has short interest of 12.3%, which is up week on week. This may have been driven by the ASIC investigation into some of the counter-drone technology company's announcements and insider share sales.
- CAR Group Limited (ASX: CAR) has short interest of 11.8%, which is up since last week. Short sellers may believe higher interest rates and rising fuel costs could weigh on the automotive market.
- Flight Centre Travel Group Ltd (ASX: FLT) has 11.2% of its shares held short, which is up week on week. Short sellers appear to believe the Middle East conflict could negatively impact the travel agent's performance.
- 4DMedical Ltd (ASX: 4DX) has entered the top ten with short interest of 11.1%. This medical technology company has a lofty valuation following a stunning gain over the past 12 months.
