These are the 10 most shorted shares on the ASX

Kogan.com Ltd (ASX:KGN) and Webjet Limited (ASX:WEB) shares are among the most shorted shares on the ASX this week…

| More on:
most shorted ASX shares

Image source: Getty Images

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:

  • Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share despite its short interest easing to 10.2%. This travel agent’s shares have come under pressure recently after guiding to a larger than expected second half loss and concerns over travel agent commission reductions.
  • Kogan.com Ltd (ASX: KGN) isn’t far behind after its short interest rose to 10.1%. Last week this ecommerce company revealed that inventory issues continue to weigh on its performance. As a result, it expects to fall well short of analyst expectations in FY 2021.
  • Resolute Mining Limited (ASX: RSG) has seen its short interest rise week on week to 10%. This gold miner’s shares have been sold off this year due to regulatory issues at its Bibiani operation in Ghana and underwhelming production and guidance.
  • Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 9.9%. Short sellers have been increasing their positions in this online furniture and homewares retailer due to a recent and disappointing trading update.
  • Tassal Group Limited (ASX: TGR) has short interest of 9.6%, which is flat week on week once again. Weakness in salmon prices and trade war concerns appear to be behind this high level of short interest.
  • Webjet Limited (ASX: WEB) has seen its short interest rise week on week to 9.4%. A stuttering travel market recovery, valuation concerns, and travel agent commission reduction fears could be weighing on investor sentiment.
  • Electro Optic Systems Hldg Ltd (ASX: EOS) has entered the top ten with short interest of 8.3%. Short sellers may be concerned that the communications, defence, and space company’s performance will be impacted by supply chain issues.
  • Megaport Ltd (ASX: MP1) has short interest of 8.2%, which is up again week on week. Short sellers may believe the Network as a Service provider’s shares are overvalued, especially with bond yields rising.
  • Inghams Group Ltd (ASX: ING) has 8% of its shares held short, which is up slightly week on week. It appears as though investors are concerned about its major contract renewal negotiation with Woolworths Group Ltd (ASX: WOW). The sudden exit of its CEO may also be weighing on sentiment.
  • JB Hi-Fi Limited (ASX: JBH) has entered the top ten with short interest of 7.4%. Short sellers may feel the retail giant’s shares are overvalued considering a sharp profit decline is being forecast in FY 2022.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Electro Optic Systems Holdings Limited, Kogan.com ltd, and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited, Flight Centre Travel Group Limited, Kogan.com ltd, MEGAPORT FPO, and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News