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:

• Telix Pharmaceuticals Ltd (ASX: TLX) remains the most shorted ASX share despite its short interest easing to 16.1%. This radiopharmaceuticals company has been facing US FDA approval challenges. In addition, some short interest could be attributable to convertible-arbitrage hedging tied to Telix’s US$600 million convertible bond refinancing.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease slightly to 15.5%. A poor update from Domino’s Pizza US last week has cast further doubt on the pizza chain operator’s turnaround.
• Polynovo Ltd (ASX: PNV) has 14.3% of its shares held short, which is up again since last week. Given that this medical device company’s shares trade on high earnings multiples, short sellers may think they are overvalued.
• Treasury Wine Estates Ltd (ASX: TWE) has 13.2% of its shares held short, which is up week on week. Tough trading conditions in the wine market have weighed on the Penfolds owner’s performance.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.1%, which is down week on week. Short sellers appear to have been closing positions in the quick service restaurant operator after the release of a better than expected update.
• Zip Co Ltd (ASX: ZIP) has 11.8% of its shares held short. This is down slightly week on week. Short sellers aren’t giving up on this buy now pay later provider despite its strong quarterly update.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 11.7%, which is down week on week. This may be due to concerns that travel demand could be impacted by the Middle East conflict and higher airfares.
• Lotus Resources Ltd (ASX: LOT) has short interest of 11.5%, which is up week on week. Last week, this uranium producer’s shares crashed after retracting previously reported figures while it works through reconciliation processes.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.45%, which is down since last week. There are concerns about this uranium miner’s uncertain production outlook beyond 2026.
• DroneShield Ltd (ASX: DRO) has 11.4% of its shares held short, which is down since last week. Valuation concerns are likely to be why short sellers are targeting this counter-drone technology company.

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.