These are the 10 most shorted ASX shares

Short sellers are targeting these ASX shares…

most shorted ASX shares

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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:

  • Zip Co Ltd (ASX: Z1P) remains the most shorted share on the ASX with short interest of 11.7%. This was a sizeable increase week on week. Short sellers have been increasing their positions since rumours emerged claiming that Apple is planning to enter the BNPL market. Though, BNPL M&A activity today could give short sellers something to think about.
  • Webjet Limited (ASX: WEB) has seen its short interest rise to 11.5%. This online travel agent's shares continue to attract short sellers following the announcement of lockdowns across Australia. The latest being in the popular tourist destination of Queensland.
  • Ltd (ASX: KGN) has short interest of 10.25%, which is up significantly week on week. Short sellers aren't giving up on this one despite lockdowns potentially boosting sales and helping the company work through its excess inventory.
  • Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease slightly to 10%. Concerns over the travel market recovery continue to weigh on this travel agent's shares.
  • Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is up slightly week on week. The market is eagerly anticipating details over a major contract renewal with a supermarket giant. The latest contract is due to end in a few weeks.
  • Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.3% of its shares held short, which is up materially week on week. Short sellers appear to be targeting this communications, defence, and space company's shares due to cash flow concerns.
  • Tassal Group Limited (ASX: TGR) has short interest of 8.1%, which is up week on week. Weak salmon prices have been weighing on investor sentiment. Though, Goldman Sachs expects them to improve in FY 2022.
  • A2 Milk Company Ltd (ASX: A2M) has seen its short interest rise to 7%. This infant formula company's shares have been hammered this year following countless guidance downgrades and concerns over potential regulatory changes in China.
  • PolyNovo Ltd (ASX: PNV) is back in the top ten with short interest of 6.7%. A weak finish to FY 2021 has been weighing heavily on this medical device company's shares.
  • InvoCare Limited (ASX: IVC) has also returned to the top ten with short interest of 6.5%. There are concerns that this funerals company is losing market share despite its significant investment in its Protect and Grow strategy 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, POLYNOVO FPO 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 A2 Milk, Flight Centre Travel Group Limited, and InvoCare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson

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