These are the 10 most shorted ASX shares

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.

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.

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

More reading

• Here are the top 10 ASX 200 shares today
• Treasury Wine Estates shares rebound 39% from 12-year low: Can they keep going?
• Down 9%: Is the rebound over for Telix shares?
• Here are the top 10 ASX 200 shares today
• Down 65%: Are DroneShield shares a buy, hold, or sell?

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.