These are the 10 most shorted ASX shares

Short sellers are targeting these ASX shares…

most shorted shares webjet

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) is now the most shorted ASX share despite its short interest falling week on week to 11.35%. Short sellers have been targeting the online travel agent amid concerns over the travel market recovery following the spread of the Delta variant.
  • Zip Co Ltd (ASX: Z1P) has seen its short interest reduce notably week on week to 10.7%. Short sellers appear to have been closing their positions following M&A activity in the BNPL industry.
  • Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease to 9.6%. Short sellers have been targeting this travel agent due to longer than expected delays in the travel market recovery.
  • Ltd (ASX: KGN) has short interest of 8.5%, which is down significantly week on week. Short sellers may be closing positions on the belief that lockdowns are boosting sales and helping the company work through its inventory issues.
  • Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.4% of its shares held short, which is up slightly week on week. Concerns over this communications, defence, and space company's cash flows appear to be behind this.
  • Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is flat week on week. Fears over a major contract renewal with a supermarket giant continue to weigh on investor sentiment.
  • Tassal Group Limited (ASX: TGR) has short interest of 7.8%, which is down week on week. Weak salmon prices have been weighing on investor sentiment. Though, news that a rival is being taken over today could boost sentiment.
  • PolyNovo Ltd (ASX: PNV) has seen its short interest increase to 7.1%. Short sellers have been increasing their positions in this medical device company following a soft finish to FY 2021.
  • A2 Milk Company Ltd (ASX: A2M) has seen its short interest ease to 6.7%. Countless guidance downgrades, weakness in the daigou channel, and concerns over potential regulatory changes in China are weighing on its shares.
  • InvoCare Limited (ASX: IVC) has seen its short interest remain flat at 6.5%. Short sellers appear to be targeting this funerals company amid concerns that it is losing market share. This is despite its significant investment in acquisitions and its strategy.

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

More on Share Market News

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another strong showing from the share market today.

Read more »

Three miners looking at a tablet.
Resources Shares

Own ASX mining shares? Experts say an upswing in commodity prices has begun

HSBC economists Paul Bloxham and Jamie Culling explain why global commodity prices are rising.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Brambles, Lifestyle Communities, Northern Star, and Select Harvests shares are sinking

These shares are having a tough session. But why?

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Share Market News

Will the Reserve Bank wait for the US Fed to cut interest rates first?

Here's when AMP thinks interest rates will be cut in the US, Australia, New Zealand, Canada and the Eurozone.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Healthco Healthcare, Medadvisor, Ramsay Health Care, and Tamboran shares are rising

These shares are having a strong session. But why?

Read more »

drug capsule opening up to reveal dollar signs signifying rising asx share price
Share Gainers

If you invested $6,000 in Mesoblast shares a month ago you'd have $15,636 now!

Mesoblast shares have been on a tear this past month. But why?

Read more »

Gold bars on top of gold coins.

Is it too late to buy gold as an investment in 2024?

Can we still take advantage of gold at new record highs?

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Mergers & Acquisitions

Wesfarmers shares baulk on fresh acquisition gossip

A healthcare company gone nowhere in a decade might be on Wesfarmers' radar.

Read more »