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.
Image source: Getty Images
The top 10 most shorted ASX shares
- Lotus Resources Ltd (ASX: LOT) has returned to the top of the table with short interest of 17.2%, which is up sharply week on week. Short sellers may be focusing on funding risk, the company's development pathway, and uncertainty around the uranium market after its heavily discounted capital raising.
- DroneShield Ltd (ASX: DRO) has seen its short interest ease to 15%. Short sellers still appear to 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 short interest of 12.6%, which is down slightly week on week. This suggests some short sellers remain unconvinced by the pizza chain operator's turnaround plans.
- 4DMedical Ltd (ASX: 4DX) has seen its short interest rise to 12.4%. 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.
- CAR Group Limited (ASX: CAR) has short interest of 12.1%, which is up week on week. Its recent result was well received by the market, but short sellers may still have concerns over its valuation, auto market conditions, and the potential impact of artificial intelligence on online classifieds over time.
- Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 11.8%. Short sellers may be targeting the Penfolds owner due to weak luxury wine demand, excess supply in the Americas, and uncertainty around the pace of its recovery.
- Paladin Energy Ltd (ASX: PDN) has 11.3% of its shares held short, which is down slightly week on week. This uranium producer continues to be targeted despite a positive update. This suggests that short sellers may still be wary of execution risk and uranium market volatility.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest fall to 11%. This elevated short interest may be due to concerns over pressure in leisure travel, softer consumer spending, and the company's ability to keep improving margins.
- PLS Group Ltd (ASX: PLS) has entered the top ten with short interest of 10.7%. Short sellers may be expecting a slower recovery in prices for the battery-making ingredient, which could weigh on earnings and cash flow.
- Elders Ltd (ASX: ELD) has also entered the top ten with short interest of 10.6%. This agribusiness company may be attracting short sellers due to uncertainty around rural conditions, farmer spending, and the timing of an earnings recovery.
