These are the 10 most shorted ASX shares

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 with short interest of 17%. Though, this is down slightly week on week again. Short sellers seem to be doubting that this pizza chain operator’s turnaround strategy will be a success.
• Boss Energy Ltd (ASX: BOE) has seen its short interest reduce again to 16.2%. This uranium producer’s shares have rallied strongly since the start of the year. This has been driven by optimism over uranium demand and prices.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.7%, which is down slightly week on week. Disappointment over this taco and burrito seller’s performance in the United States could be behind this. After all, this market is a key part of analysts’ growth assumptions.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 13.3%. This wine giant is going through a tough period. This includes facing distributor uncertainty in the United States and unfavourable consumer trends.
• IDP Education Ltd (ASX: IEL) has 12.8% of its shares held short, which is up week on week again. Student visa changes in key markets are negatively impacting the company’s performance and outlook.
• Polynovo Ltd (ASX: PNV) has short interest of 12.1%, which is up since last week. This is likely to be due to concerns over this medical device company’s valuation.
• Flight Centre Travel Group Ltd (ASX: FLT) is back in the top ten with short interest of 11.5%. Short sellers may believe that consumer trends could put pressure on the travel agent’s revenue margin outlook.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 11.4%, which is up slightly week on week. Traders may be concerned that this radiopharmaceuticals company could struggle again with its FDA approvals in 2026.
• Paladin Energy Ltd (ASX: PDN) has short interest of 10.8%, which is down sharply week on week. This uranium producer’s shares have been on fire this year, which appears to have led to short sellers closing positions in a hurry.
• DroneShield Ltd (ASX: DRO) has returned to the top ten with short interest of 10.1%. Short sellers may believe the market is being too bullish on this counter-drone technology company’s growth outlook.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, PolyNovo, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Flight Centre Travel Group, PolyNovo, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.