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At the start of each week, I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.
This is because I believe it is well 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, here are the 10 most shorted shares on the ASX this week according to ASIC:
- Boss Energy Ltd (ASX: BOE) starts the year as the most shorted ASX share with short interest of 20.4%, which is down sharply week on week. Short sellers were big winners in 2025 after the uranium producer's shares crashed in response to a very disappointing update on the Honeymoon Project.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest remain flat at 17.9%. Short sellers don't appear to believe that this pizza chain operator's performance will improve meaningfully in 2026.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is up week on week again. This could be due to valuation concerns, with the burrito seller's shares trading on sky-high multiples.
- Paladin Energy Ltd (ASX: PDN) has short interest of 13.1%, which is down week on week again. Potential operational challenges and uranium pricing doubts may be behind this.
- IDP Education Ltd (ASX: IEL) has 12.6% of its shares held short, which is up week on week again. Short sellers have been targeting this language testing and student placement company's shares due to concerns over student visa changes.
- PWR Holdings Ltd (ASX: PWH) has short interest of 11.8%, which is up since last week. Short sellers have loaded up on this motorsport products company's shares recently as it goes through a transitional period.
- Polynovo Ltd (ASX: PNV) has short interest of 11.5%, which is up since last week. This may also be due to valuation concerns for this medical device company's shares.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 11%, which is flat week on week. This radiopharmaceuticals company's shares were sold off last year in response to delays to FDA approvals and increased regulatory scrutiny.
- DroneShield Ltd (ASX: DRO) has entered the top ten with short interest of 10.5%. The bulls and the bears have been battling it out with this counter drone technology company's shares in recent months. It seems that the bears believe its shares are overvalued after rising 300% in 2025.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.4%, which is down week on week again. It seems that short sellers are closing positions after the travel agent reported a positive start to FY 2026 and a new cruise acquisition.
