These are the 10 most shorted shares on the ASX

Short sellers are targeting these ASX shares…

most shorted ASX shares

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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:

  • Webjet Limited (ASX: WEB) has become the most shorted share on the ASX after its short interest rose to 11%. Lockdowns and border closures appear to be weighing heavily on this online travel agent's shares.
  • Ltd (ASX: KGN) has seen its short interest fall meaningfully week on week to 10.2%. Short sellers appear to have been closing positions on the belief that the recent outbreak of COVID-19 in Australia could boost online retailers again.
  • Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest jump to 10.1%. As with Webjet, lockdowns and border closures look set to delay this travel agent's recovery from the pandemic.
  • Inghams Group Ltd (ASX: ING) has 8.8% of its shares held short, which is flat week on week. Short sellers are believed to be targeting the poultry company due to concerns over an upcoming major contract renewal with a supermarket giant.
  • Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.1% of its shares held short, which is down week on week once again. Supply chain concerns and unusual accounting methods are the reason this communications, defence, and space company is being targeted.
  • Resolute Mining Limited (ASX: RSG) has seen its short interest remain at 8%. A weakening outlook for the gold price and production and regulatory issues have weighed heavily on its shares this year.
  • Zip Co Ltd (ASX: Z1P) has short interest of 8%, which is up week on week again. There are concerns that Afterpay's new pay anywhere service in the United States could disrupt Zip's key Quadpay business.
  • Tassal Group Limited (ASX: TGR) has short interest of 7.7%, which is down week on week once again. With salmon prices tipped to rebound, short sellers appear to have been closing their positions.
  • Temple & Webster Group Ltd (ASX: TPW) has seen its short interest ease to 7.6%. As with Kogan, short sellers may have been closing positions on the belief that the recent outbreak of COVID-19 has given ecommerce companies a major lift.
  • InvoCare Limited (ASX: IVC) is back in the top ten with short interest of 6.9%. There are concerns that InvoCare could be losing market share to its funeral industry rivals despite its investments and acquisitions.

Motley Fool contributor 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 has recommended Electro Optic Systems Holdings Limited, ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, ltd, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, InvoCare Limited, 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

a smiling young woman carrying a pile of books, indicating a lifting share price for book sellers
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX utilities shares led the 11 market sectors for a second consecutive week.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will cut Australian interest rates

Are interest rates coming in 2024 or 2025?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A young boy sits on his father's shoulders as they flex their muscles at sunrise on a beach

Where I'd invest $10,000 in ASX growth shares right now

These are my top picks for growth.

Read more »

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward representing the ASX tech share sell-off today
Share Market News

How likely is a stock market crash in 2024?

Stock market crashes are a painful, but inevitable, part of investing.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Resources Shares

Goldman Sachs says this ASX 200 mining share is in for a 33% whack

The top broker predicts a fairly miserable 12 months ahead for this diversified miner.

Read more »

A woman wearing a top of gold coins and large gold hoop earrings and a heavy gold bracelet stands amid a shower of gold coins with her mouth open wide and an excited look on her face.

I believe this ASX 200 stock can DOUBLE its profit in 5 years

This stock has enormous profit growth potential in my eyes, here’s why.

Read more »

Top ten gold trophy.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured a sour end to the trading week today.

Read more »