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) has returned to the top of the table with short interest of 14.9%, which is down slightly week on week. The counter-drone technology company remains a popular target for short sellers. This could be partly due to the ongoing uncertainty created by ASIC’s investigation.
• Lotus Resources Ltd (ASX: LOT) has seen its short interest fall sharply to 13.6%, but it remains the second most shorted ASX share. The uranium developer’s recent capital raising may have eased some pressure, though short sellers still appear to be questioning development timelines and uranium demand.
• 4DMedical Ltd (ASX: 4DX) has short interest of 12.4%, which is broadly unchanged since last week. The medical imaging technology company continues to divide the market. While some investors see a large commercial opportunity, short sellers may be focusing on the gap between its market valuation and its current revenue base.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 12.3%. The pizza chain operator is trying to reset the business after a difficult period of store closures, impairments, and weaker trading. Short sellers may be waiting for clearer evidence that the turnaround will succeed.
• CAR Group Limited (ASX: CAR) has short interest of 12.1%, which is flat since last week. This may reflect concerns over the auto listings company’s outlook in a difficult operating environment.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 12%. Short sellers may have concerns over weak wine demand and the pace of the Penfolds owner’s recovery.
• Paladin Energy Ltd (ASX: PDN) has 11.2% of its shares held short, which is down slightly week on week. Short sellers appear to believe the market is too optimistic on production, costs, and uranium prices.
• PLS Group Ltd (ASX: PLS) has seen its short interest rise to 11.1%. Short sellers may be betting that prices for the battery-making ingredient remain under pressure, which would be bad news for margins.
• Zip Co Ltd (ASX: ZIP) has entered the top ten with short interest of 10.9%. Its strong share price recovery may have led some short sellers to question whether expectations have run too far, especially given weak consumer spending.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease to 10.8%. Short sellers may still have concerns over Middle East disruption, margins, and travel demand.

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 Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended CAR Group Ltd, Domino’s Pizza Enterprises, and Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) mining and materials shares outperformed last week, rising 2.5% vs. an 0.4% bump for the index.

As earnings season comes to a close today, let’s review new ratings on three popular ASX 200 mining shares.

BHP Group Ltd (ASX: BHP)

BHP is a major iron ore producer and also the world’s largest copper producer.

Last week, the BHP share price hit a new record of $68.77 per share.

Morgans has a buy rating on the market’s largest ASX 200 mining share. 

On The Bull this week, analyst Damien Nguyen said: 

BHP offers exposure to a portfolio of high quality mining assets and remains well positioned to benefit from long term demand for copper and other critical minerals.

A strong operating performance, healthy cash generation and a disciplined approach to capital allocation continue to support the investment case.

While iron ore remains important, increasing copper exposure provides leverage to electrification and decarbonisation trends.

BHP appeals for potential capital growth, income and for diversified resources exposure.

The company posted an attributable profit of $US9.8 billion in full year 2026, up 9 per cent on the prior corresponding period.

Revenue of $US58.8 billion was up 15 per cent.

BHP is among 37 ASX shares going ex-dividend this week.

The miner declared a final fully franked dividend of 99 US cents per share for FY26.

BHP shares will trade ex-dividend on Thursday.

Rio Tinto Ltd (ASX: RIO)

Rio Tinto is a diversified miner with significant iron ore, copper, and lithium operations.

Morgans has a hold rating on this ASX 200 mining share.

Nguyen explained:

Rio Tinto continues to generate strong cash flow from its world class iron ore operations, while building exposure to copper and lithium.

The company maintains a robust balance sheet and offers attractive shareholder returns, supported by low cost assets.

However, iron ore remains the primary earnings driver, leaving profits exposed to movements in commodity prices and Chinese demand.

Given this balance of quality and cyclical risk, we see Rio Tinto as fairly valued at recent levels.

PLS Group Ltd (ASX: PLS)

PLS Group is the ASX 200’s most valuable lithium share by market capitalisation.

Morgans has a sell recommendation on PLS Group shares.

Analyst Annabelle Sleeman commented:

PLS delivered an in-line FY26 Underlying EBITDA result and surprised with a maiden 5cps fully franked final dividend (22% FCF payout).

We view PLS as fairly valued at current levels, with its premium to peers already reflecting the company’s best-in-class execution, balance sheet and growth optionality.

Depleted lithium inventories leave scope for short-term upside, though we see the medium-term outlook as more volatile given uncertainty around supply and demand drivers.

PLS Group shares will trade ex-dividend on Wednesday.

The post Buy, hold, sell: Rio Tinto, PLS Group, BHP shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think quality ASX 200 blue-chip shares can be a great foundation for a portfolio.

But which ones could be buys right now?

Well, to narrow things down, let’s look at two that analysts at Morgans are recommending to investors this week, courtesy of The Bull.

Here’s what you need to know:

BHP Group Ltd (ASX: BHP)

Morgans is positive on BHP and has named it as an ASX 200 blue-chip share to buy this week.

The broker likes the mining giant due to its portfolio of high quality mining assets, which leave it well-positioned to benefit from the long-term demand for copper and other critical minerals.

It expects the former to provide leverage to the electrification and decarbonisation megatrends. Morgans said:

BHP offers exposure to a portfolio of high quality mining assets and remains well positioned to benefit from long term demand for copper and other critical minerals. A strong operating performance, healthy cash generation and a disciplined approach to capital allocation continue to support the investment case. While iron ore remains important, increasing copper exposure provides leverage to electrification and decarbonisation trends. 

BHP appeals for potential capital growth, income and for diversified resources exposure. The company posted an attributable profit of $US9.8 billion in full year 2026, up 9 per cent on the prior corresponding period. Revenue of $US58.8 billion was up 15 per cent. BHP recently declared a final fully franked dividend of US99 cents a share.

CSL Ltd (ASX: CSL)

The team at Morgans is also feeling positive about biotechnology giant CSL and has named it as an ASX 200 blue-chip share to buy now.

It likes CSL due to its strong competitive advantage in plasma therapies.

And while its performance has been disappointing in recent years, Morgans believes that its FY 2026 results could mark the bottom of the cycle.

The broker also likes CSL shares due to their defensive qualities and long-term growth outlook. It explains:

CSL is a global healthcare leader with strong competitive advantages across plasma therapies, vaccines and specialty medicines. Demand for its products remain largely independent of economic conditions. In our view, the latest full year result in 2026 is generating confidence that repeated earnings downgrades are behind CSL. With defensive earnings, global market leadership and attractive long term growth prospects, we view CSL as an appealing investment opportunity.

The post Experts name 2 ASX 200 blue chip shares to buy this week appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Rio Tinto, PLS Group, BHP shares
• By September 2027, BHP shares could turn $10,000 into…
• Are these 2 top Vanguard ETFs still worth buying today?
• Buy, hold, sell: Commonwealth Bank, Goodman Group, CSL shares
• ASX 200 mining shares outperform in final week of earnings season

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.