Here 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 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.

The post Here 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, 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 CAR Group Ltd, Domino’s Pizza Enterprises, Flight Centre Travel Group, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.