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 the most shorted ASX share after its short interest jumped from 14.5% to 16.2%. Short sellers may still be concerned about the ASIC investigation into the company's previous market disclosures and share trading, as well as its ability to deliver on growth expectations.
- Lotus Resources Ltd (ASX: LOT) has seen its short interest rise to 15.6%. With the company working to increase production at its Kayelekera uranium mine, short sellers may be questioning whether it can achieve its production targets without further cost pressures.
- Boss Energy Ltd (ASX: BOE) has short interest of 15.1%, up from 13.1% last week. This could reflect doubts about the company's revised development plans for its Honeymoon uranium operation, particularly whether it can deliver the production and cost improvements outlined in its latest feasibility study.
- Zip Co Ltd (ASX: ZIP) has moved up the table with 12.9% of its shares held short, compared to 12.6% last week. Short sellers may be concerned about the sustainability of its US growth and the potential for higher funding costs and customer defaults to weigh on profitability due to higher rates.
- PLS Group Ltd (ASX: PLS) has short interest of 12.9%, up slightly since last week. With lithium prices weakening recently and forecasts pointing to a potential supply surplus in 2027, short sellers may be betting that the company's earnings will be less than expected.
- IperionX Ltd (ASX: IPX) has seen its short interest increase to 12.9%. Although the company is making progress with its titanium production technology, short sellers may remain sceptical about how quickly it can scale up manufacturing and generate meaningful profits.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has 12.1% of its shares held short, up from 11.7% last week. The company recently announced another leadership change in Australia and New Zealand, and short sellers may be questioning whether its restructuring efforts can deliver a sustained recovery in sales and earnings.
- Paladin Energy Ltd (ASX: PDN) has short interest of 11.8%, compared to 11.5% last week. Its Langer Heinrich mine recently reported quarterly uranium production below market expectations, potentially adding to concerns about production reliability and recovery rates.
- Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest rise to 11.8%. Short sellers may be concerned about the financial and operational risks associated with the proposed acquisition of Meteoric Resources and the development of its Caldeira rare earths project in Brazil.
- WiseTech Global Ltd (ASX: WTC) has entered the top ten with short interest of 11%. Short sellers may be questioning whether the logistics software company can deliver the expected benefits from its major e2open acquisition and AI-driven restructuring, particularly given the significant changes taking place across the business.
