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:
- Kogan.com Ltd (ASX: KGN) continues to be the most shorted share on the ASX despite its short interest easing slightly to 11.8%. The ecommerce company's shares have come under pressure after it revealed significant inventory issues and a slowdown in sales.
- Webjet Limited (ASX: WEB) has seen its short interest rise to 10.5%. This online travel agent's shares may have been targeted due to concerns they are overvalued at the current level. Especially with the travel market recovery taking longer than hoped.
- Resolute Mining Limited (ASX: RSG) has seen its short interest remain flat at 10.4%. A number of factors have been weighing on this gold miner's shares this year. This includes regulatory issues at its Bibiani operation in Ghana and its underwhelming production performance and guidance. It was also just dumped out of the ASX 200 index.
- Temple & Webster Group Ltd (ASX: TPW) has seen its short interest ease slightly to 9.5%. This online furniture and homewares retailer recently revealed that it would be sacrificing its profit growth in order to invest heavily in its future sales growth.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise strongly to 9.4%. Concerns over its valuation and delays to the travel market recovery appear to be behind this high level of short interest.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.8% of its shares held short, which is down week on week. This communications, defence, and space company could be being targeted by short sellers due to concerns that supply chain issues could impact its performance.
- Tassal Group Limited (ASX: TGR) has short interest of 8.5%, which is down week on week. Unfortunately for short sellers, last week Goldman Sachs retained its buy rating and lifted its price target to $4.10. It notes that Tassal is set for a stronger FY 2022 with a recovery in demand for Atlantic Salmon and Prawns well underway.
- Inghams Group Ltd (ASX: ING) has 7.9% of its shares held short, which is flat week on week. Short sellers are holding firm despite the poultry company's shares recently hitting a 52-week high.
- Zip Co Ltd (ASX: Z1P) has short interest of 7.5%, which is up week on week. Valuation and competition concerns may be weighing on sentiment. In respect to the latter, there are fears that a US bank will enter the BNPL market and undercut its Quadpay business.
- Megaport Ltd (ASX: MP1) has short interest of 7.5%, which is down week on week once again. Valuation concerns have been weighing on this Network as a Service provider's shares.
