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) has returned to the top of the table with short interest of 15.2%, up from 14.3% last week. The counter-drone technology company remains a major target for short sellers, possibly due to the uncertainty created by the ongoing ASIC investigation.
- Lotus Resources Ltd (ASX: LOT) has seen its short interest fall sharply to 13.3%. Short sellers may have concerns over the uranium producer's production ramp-up at Kayelekera and how quickly it can reach its longer-term targets.
- Boss Energy Ltd (ASX: BOE) has seen its short interest rise to 13.2%. Despite achieving its revised FY 2026 production guidance, short sellers may be questioning the longer-term production outlook at Honeymoon.
- IperionX Ltd (ASX: IPX) has short interest of 12.8%, which is up again week on week. Short sellers seem to believe plenty of future growth is already priced in as the titanium company works to scale up its US operations.
- Zip Co Ltd (ASX: ZIP) has seen its short interest jump to 12.7%. Short sellers may believe higher interest rates could put pressure on the buy now pay later company's business model by increasing funding costs and weighing on consumer spending.
- PLS Group Ltd (ASX: PLS) has 12.3% of its shares held short, up from 11.7% last week. Short sellers may be betting that the recent improvement in lithium market conditions will not last.
- 4DMedical Ltd (ASX: 4DX) has seen its short interest ease slightly to 11.9%. The medical technology company continues to make commercial progress, but its high valuation relative to current revenue makes it an obvious target for short sellers.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.8%, which is broadly unchanged week on week. Short sellers may still be waiting for stronger evidence that the pizza chain operator's turnaround can deliver a meaningful earnings recovery before closing positions.
- Paladin Energy Ltd (ASX: PDN) has returned to the top ten with short interest of 11%. This is a third uranium stock that short sellers are loading up on.
- Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise slightly to 10.9%. Short sellers may remain cautious on the Penfolds owner due to weak luxury wine demand and the work still required to improve its Americas business.
