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.
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The top 10 most shorted ASX shares
- DroneShield Ltd (ASX: DRO) remains at the top of the table with short interest of 15.7%, which is up again week on week. Short sellers may still have concerns over the ASIC investigation into the counter-drone technology company, as well as valuation risk.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise to 12.7%. This suggests some short sellers remain unconvinced by the pizza chain operator's turnaround plans, particularly given its store closures, write-downs, and the challenge of restoring sales momentum.
- Boss Energy Ltd (ASX: BOE) has short interest of 12%, which is down slightly week on week. Short sellers may still have doubts over whether the uranium miner can deliver consistently from Honeymoon and support a stronger production outlook beyond the next couple of years.
- 4DMedical Ltd (ASX: 4DX) has seen its short interest fall materially to 11.8%. However, the medical technology company remains heavily shorted due to its elevated valuation and modest revenue base. FY 2026 revenue came in at just $7.2 million.
- Flight Centre Travel Group Ltd (ASX: FLT) has 11.6% of its shares held short, which is down slightly week on week. Short sellers may be focused on pressure in leisure travel, softer consumer spending, and the disruption caused by the Middle East conflict.
- Paladin Energy Ltd (ASX: PDN) has 11.5% of its shares held short, which is down week on week. This uranium producer continues to be targeted despite a positive quarterly update, which suggests short sellers may still be wary of execution risk and uranium market volatility.
- Lotus Resources Ltd (ASX: LOT) has seen its short interest fall to 11.3%. Some short sellers appear to have closed positions after the uranium developer's deeply discounted capital raising and heavy share price decline.
- CAR Group Limited (ASX: CAR) has short interest of 11.3%, which is down week on week. Its recent result was well received by the market, but short sellers may still have concerns over the long-term impact of artificial intelligence on online classifieds.
- Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease again to 11%. Regulatory uncertainty appears to remain a key concern, with investors watching closely for progress across the radiopharmaceuticals company's US approval pipeline.
- Treasury Wine Estates Ltd (ASX: TWE) has returned to the top ten with short interest of 10.9%. Short sellers may be targeting the Penfolds owner due to weak luxury wine demand, excess supply in the Americas, and the uncertainty created by its latest restructuring.
