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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 with short interest of 22.8%. This ASX uranium stock has suspended its shares pending an update on its Kayelekera Project.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease again to 14.3%. Short sellers don't appear confident that this pizza chain operator's turnaround will be a success.
- Boss Energy Ltd (ASX: BOE) has short interest of 13.7%, which is down week on week. There are concerns over this uranium miner's uncertain production outlook from 2027.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12.9%, which is flat since last week. This radiopharmaceuticals company's shares have struggled over the past 18 months amid challenges to US FDA approvals.
- DroneShield Ltd (ASX: DRO) has seen its short interest increase to 12.5%. Short sellers have been increasing positions in this counter-drone technology company since it disclosed an ASIC investigation into some announcements and insider share sales.
- CAR Group Limited (ASX: CAR) has short interest of 12.2%, which is up slightly again since last week. Short sellers may believe that higher interest rates could weigh on the automotive market and listings.
- Flight Centre Travel Group Ltd (ASX: FLT) has 11.5% of its shares held short, which is flat week on week. This travel agent recently downgraded its earnings guidance due to negative impacts from the Middle East conflict.
- Treasury Wine Estates Ltd (ASX: TWE) has short interest of 11.4%. This wine giant is battling tough trading conditions and distribution challenges in key markets.
- Paladin Energy Ltd (ASX: PDN) has entered the top ten with 11.35% of its shares held short. This uranium producer's shares have dropped 17% in a month. Short sellers appear to believe there is more to come.
- 4DMedical Ltd (ASX: 4DX) has seen its short interest ease to 11.1%. This short interest is likely to be due to valuation concerns, with the medical technology company's shares trading on sky high multiples.
