Domino’s Pizza Enterprises has become the most shorted company listed on the Australian Securities Exchange (ASX), driven by investor sentiment regarding the company’s valuation. According to the latest data published by the Australian Securities and Investments Commission (ASIC), as of January 19, short positions accounted for 17.3 per cent of Domino’s total share registry. Domino’s Pizza Enterprises operates and franchises Domino’s pizza restaurants across several countries. The company plays a significant role in the quick-service restaurant sector.
The fast-food retailer overtook uranium producer Boss Energy, which previously held the top spot. Boss Energy’s reported short position decreased from 18 per cent on January 16 to 16.3 per cent on January 19. ASIC’s data relies on disclosures made by short sellers. Short selling is a practice where investors profit from an anticipated decline in a company’s share price by borrowing shares, selling them, and then repurchasing them at a lower price to return them to the lender.
Other companies with notable short positions include Guzman y Gomez, holding the third position at 13.8 per cent, followed by Treasury Wine Estates at 13 per cent, and IDP Education at 12.3 per cent. These figures highlight varying degrees of investor scepticism across different sectors of the Australian market.
Despite recent gains with shares in Domino’s last up 1.1 per cent, the company’s stock remains significantly below its level from five years ago, showing a decrease of 73 per cent. This substantial drop likely contributes to the increased short selling activity as investors bet against the company’s future performance.
