Once a 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, listed below are the 10 most shorted shares on the ASX this week according to ASIC.
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The top ten most shorted ASX shares
- Lotus Resources Ltd (ASX: LOT) is still Australia's most shorted share with short interest of 22.8%. This uranium developer was due to return from a lengthy suspension last week with an update on its Kayelekera Project. Instead, the company requested more time as it prepares a funding package.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease again to 13.8%. Short sellers appear to be doubting this pizza chain operator's turnaround plans.
- DroneShield Ltd (ASX: DRO) has short interest of 12.8%, which is up sharply since last week. This counter-drone technology company's shares could have been targeted due to a recent ASIC investigation into an announcement and insider share sales.
- 4DMedical Ltd (ASX: 4DX) has seen its short interest rise to 12%. This could be due to valuation concerns, with the medical technology company's shares trading on sky-high multiples.
- Flight Centre Travel Group Ltd (ASX: FLT) has 11.8% of its shares held short, which is up week on week. There are concerns this travel agent giant could be negatively impacted by the Middle East conflict.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 11.7%, which is down slightly again week on week. Short sellers appear to believe the radiopharmaceuticals company could continue to struggle gaining US FDA approvals.
- Boss Energy Ltd (ASX: BOE) has short interest of 11.7%, which is down week on week again. This uranium miner's production outlook beyond 2027 is uncertain. An update is due by the end of August.
- CAR Group Limited (ASX: CAR) has short interest of 11.6%, which is up week on week. There may be fears that higher interest rates could slow the growth of the automotive market and listing volumes.
- Paladin Energy Ltd (ASX: PDN) has 11.5% of its shares held short, which is up week on week. It is another uranium producer that short sellers have been targeting.
- Elders Ltd (ASX: ELD) has entered the top ten with short interest of 10.75%. This agribusiness company has underperformed the market's expectations this year.
