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:

  • Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share after its short interest rose week on week to 11.1%. Short sellers continue to build up their positions despite the travel agent expecting to reach profitability again during FY 2022.
  • Zip Co Ltd (ASX: Z1P) has seen its short interest rise strongly to 10.3%. Short sellers appear to be targeting this buy now pay later provider due to increasing competition and ballooning costs.
  • Ltd (ASX: KGN) has short interest of 9.9%, which is up week on week. Short sellers aren't giving up on this ecommerce company. They appear to believe it could still be struggling with inventory issues.
  • Webjet Limited (ASX: WEB) has short interest of 9.9%, which is up week on week. Although the online travel agent recently revealed a significant improvement in the performance of its WebBeds business, short sellers aren't closing positions.
  • Electro Optic Systems Hldg Ltd (ASX: EOS) has 9.1% of its shares held short, which is up week on week. Short sellers are reportedly going after this defence and space company due to accounting and cash generation concerns.
  • Mesoblast limited (ASX: MSB) has seen its short interest rise week on week once again to 8.6%. Fears that this biotech company may have to raise more capital to fund its operations are weighing on sentiment.
  • Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is up strongly week on week. Changes in consumer habits and rising grain costs may be weighing on its shares.
  • Cooper Energy Ltd (ASX: COE) has 7.9% of its shares held short, which is up week on week. The underperformance of Project Sole has been weighing on investor sentiment.
  • Tassal Group Limited (ASX: TGR) is back in the top ten with short interest of 7.6%. Weakness in salmon prices continues to hold back this seafood company's shares. According to the Nasdaq Salmon index, prices have fallen 15% over the last 12 weeks.
  • Redbubble Ltd (ASX: RBL) has seen its short interest fall to 7.5%. Short sellers may have concerns over a deceleration in its growth during the fourth quarter of FY 2021.

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, 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. 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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