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.

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.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week with a strong gain. The benchmark index rose 1% to 8,806.7 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for a subdued start to the week following a poor session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.1% lower. In the United States, the Dow Jones was down 0.35%, the S&P 500 fell 1.1%, and the Nasdaq sank 2.15%.

Oil prices jump

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a strong start to the week after oil prices jumped on Friday night. According to Bloomberg, the WTI crude oil price was up 3.5% to US$101.41 a barrel and the Brent crude oil price was up 3.7% to US$109.86 a barrel. Increased Strait of Hormuz attacks and reports that Ukraine is vowing to hit Russian refineries were behind the rise.

Buy Mesoblast shares

Mesoblast Ltd (ASX: MSB) shares offer major upside according to Bell Potter. This morning, the broker has retained its buy rating and slightly trimmed price target of $4.40 on the biotech company’s shares. It said: “The miss on September quarter revenues requires a downgrade to the forecast for FY27 Ryoncil revenues. The forecast is lowered by 18% ($243m to $203m) with the NPAT reduced by a similar quantum to $26.7m. The FY28 revenue forecast is reduced by 7%, however, there are no changes to the long-term outlook. Price target is reduced to $4.40.”

Gold price edges higher

It could be a reasonable start to the week for ASX 200 gold shares such as Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price edged higher on Friday night. According to CNBC, the gold futures price was up 0.25% to US$4,181.1 an ounce. This couldn’t stop the precious metal from recording a weekly decline following hotter-than-expected U.S. inflation data.

Buy PLS shares

The team at Bell Potter remains positive on PLS Group Ltd (ASX: PLS) shares following the final investment decision to double Pilgangoora nameplate spodumene concentrate capacity to 2Mtpa. In response, the broker has retained its buy rating on the lithium miner’s shares with a trimmed price target of $4.10 (from $4.40). It said: “While P2000 introduces medium-term execution risk, completion will meaningfully strengthen PLS’ long-term position as a large, low-cost hard-rock lithium producer. The company retains offtake optionality with ~50% of FY30 expected SC production of 2Mtpa uncontracted. Colina development studies are progressing, providing additional organic growth optionality in markets with strong underlying demand fundamentals from EV adoption and BESS deployment.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

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• Buy, hold, sell: Santos, BHP, Telstra shares
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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Sigma Healthcare Ltd (ASX: SIG) share price has seen its fair share of volatility in the last year, as the chart below shows. The owner of Chemist Warehouse, Amcal and Discount Drug Stores has delivered strong financial performance, even if the valuation hasn’t reflected that.

When a business reports solid earnings growth, it normally leads to strong shareholder returns. The FY26 result clearly demonstrated what the company is capable of.

Let’s review what the company achieved in the 2026 financial year, then consider what experts think of Sigma Healthcare’s share price.

FY26 earnings recap

In the 2026 financial year, revenue grew by 15.5% to $10.8 billion. The Australian segment grew revenue by 14.9% to $10.4 billion, while the international segment grew revenue by 33% to $421.4 million. Australian Chemist Warehouse like-for-like sales growth was 13.4%, while international like-for-like sales growth was 12.2%.

That’s an impressive level of growth considering how long the company has been growing.

It added 24 Chemist Warehouse branded stores to the Australian network to reach 561, while the international segment opened 20 stores offshore to reach 98.

Profit improved even faster than revenue. The company’s normalised operating profit (EBIT) grew 20.6% to $1.09 billion, with the EBIT margin improving to 10.1%. Within that, Australian EBIT rose 18.3% and international EBIT grew 91.3%. Normalised net profit increased by 22.3% to $732.3 million.

It also revealed that net debt reduced to $663 million, so the balance sheet health improved on a debt-to-normalised EBITDA ratio basis to 0.57x.

The merger between Sigma Healthcare and Chemist Warehouse continues to deliver significant integration synergies. The synergies delivered reached $32.6 million. The company said it’s on track to reach $100 million per year by FY29.

There were solid growth numbers all around. The company’s earnings look set to grow in FY27. In its outlook commentary, the company said Australian Chemist Warehouse branded store network continues to see double-digit like-for-like sales growth.

For the first half of FY27, it plans to onboard 13 Chemist Warehouse stores in the Australian network and another 19 international stores, including its entry into the UK market. It also plans to open 42 stores across Amcal and Discount Drug Stores in Australia during the first half of FY27.

Sigma Healthcare share price target

A price target is where analysts think the share price of a business will be in 12 months from the time of the investment call.

According to CMC Invest, there have been 11 analyst ratings on the business within the last three months. Nine of those ratings were a buy, and two were a hold. The average price target of those 11 analysts is $3.14, suggesting a possible rise of 10% over the next year.

The most optimistic price target is $3.58. This implies a possible rise of around 25% over the next year.

Overall, it seems like a compelling long-term opportunity, though it’s not the only ASX stock worth looking at.

The post How much could the Sigma Healthcare share price rise in the next year? appeared first on The Motley Fool Australia.

More reading

• ASX 200 utilities and healthcare shares win the week again
• Why these are my favourite ASX growth shares to buy and hold
• Here are the top 10 ASX 200 shares today
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• 3 ASX 200 shares I would buy and hold for 10 years

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.