These are the 10 most shorted ASX shares

Short sellers are targeting these ASX shares…

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Once a 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) continues to be the most shorted ASX share after its short interest rose to 12.3%. This high level of short interest appears to be due to valuation concerns and rising COVID cases in Europe.
  • Kogan.com Ltd (ASX: KGN) has seen its short interest rise week on week again to 11.5%. Short sellers don’t appear to believe this ecommerce company’s performance is improving as quickly as hoped.
  • Redbubble Ltd (ASX: RBL) has short interest of 10.5%, which is up slightly week on week. Short sellers have been increasing their positions in this ecommerce company since the release of disappointing quarterly update.
  • Webjet Limited (ASX: WEB) has short interest of 9.3%, which is up meaningfully week on week. Short sellers seem confident this online travel agent’s half year results this week will disappoint.
  • Zip Co Ltd (ASX: Z1P) has seen its short interest rise to 9.2%. Reports of rising fraud in the BNPL industry and increasing competition could be weighing on investor sentiment.
  • Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.9% of its shares held short, which is up week on week again. This defence and space company recently downgraded its earnings guidance.
  • Mesoblast limited (ASX: MSB) has short interest of 8.7%, which is down week on week. This biotech company’s precarious financial position is likely to be weighing on sentiment.
  • Cooper Energy Ltd (ASX: COE) has 8.5% of its shares held short, which is up week on week again. A disappointing performance from its Sole Gas operation appears to be behind this high level of short interest.
  • Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is flat week on week. This appears to be due to concerns that this poultry producer could be negatively impacted by higher grain costs.
  • BHP Group Ltd (ASX: BHP) is back in the top ten with 7.1% of its shares held short. This appears to have been driven by weakness in iron ore prices.

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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 and Kogan.com ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. 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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