Priest Spells not hitting correct target!

Hi, I am playing a Disc Priest and I am running dungeons. When I use my spells, for example penance, against the enemy target to generate atonement heals it quite frequently attacks a friendly target instead of the enemy target even though the enemy target is selected.

This is also happening with Power Word Shield and Renew.

I do not have the smart targeting or what ever it is called selected in the options.

Is this a bug or is something else activated in my options? If so, It should be clear that this is happening as default and the option to stop it advised.

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