These are the 10 most shorted ASX shares

Short sellers are targeting these 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:

  • Webjet Limited (ASX: WEB) remains the most shorted ASX share despite its short interest falling to 10.9%. Concerns that the Delta strain of COVID-19 could delay the travel market recovery have been weighing on sentiment.
  • Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest fall to 10.8%. Short sellers may be regretting this one. Last week the travel agent's shares rocketed higher after management revealed that it hopes to reach profitability again during FY 2022.
  • Zip Co Ltd (ASX: Z1P) has seen its short interest rise slightly week on week to 9.4%. Concerns over rising costs and increasing competition appear to be behind this high level of short interest.
  • Kogan.com Ltd (ASX: KGN) has short interest of 9%, which is up week on week. Short sellers will have been pleased to see this ecommerce company's shares tumble last week after the release of a disappointing full year result.
  • Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.8% of its shares held short, which is up week on week. This morning Electro Optic Systems released its half year results and revealed a 30% increase in revenue but a loss after tax of $11.7 million. Its cash balance has also fallen from $128.1 million 12 months ago to $51.1 million today.
  • Piedmont Lithium Inc (ASX: PLL) is a new entry in the top ten with short interest of 8.3%. Valuation and permit concerns may be weighing on the lithium miner's shares.
  • Inghams Group Ltd (ASX: ING) has 7.7% of its shares held short, which is down week on week. Short sellers may be closing positions after a strong full year result last week. The poultry company also announced an agreement to extend its key supply contract with Woolworths Group Ltd (ASX: WOW).
  • Tassal Group Limited (ASX: TGR) has short interest of 7.3%, which is flat week on week. Weak seafood prices have been weighing on sentiment.
  • Redbubble Ltd (ASX: RBL) is back in the top ten with short interest of 6.9%. This is despite this ecommerce company recently releasing a strong full year result. Short sellers may not believe its strong form will continue in FY 2022.
  • Resolute Mining Limited (ASX: RSG) has short interest of 6.8%, which is up week on week. Last week the gold miner released its half year results and revealed a disappointing US$220 million loss.

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, Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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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