These are the 10 most shorted ASX shares

Short sellers are currently 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) remains the most shorted ASX share with short interest of 17.6%. Short sellers appear to believe the market is too optimistic with the travel market recovery.
  • Betmakers Technology Group Ltd (ASX: BET) has seen its short interest remain flat at 12.8%. Sky high multiples and concerns over rising cash burn in the sports betting industry appear to be weighing on sentiment.
  • Nanosonics Ltd (ASX: NAN) has short interest of 11.9%, which is flat week on week. This infection prevention company’s shares have come under pressure after it announced a major and disruptive change to its sales model in the United States.
  • Webjet Limited (ASX: WEB) has short interest of 10.2%, which is down slightly week on week. Volatile travel markets and rising oil prices continue to weigh on sentiment.
  • Polynovo Ltd (ASX: PNV) has seen its short interest rise to 9.1%. This medical device company’s underperformance appears to be attracting short sellers. Especially with its shares trading on high multiples.
  • Kogan.com Ltd (ASX: KGN) has seen its short interest remain flat again at 9%. Short sellers appear concerned by its weakening sales, high marketing costs, and Amazon growing its Australian market share rapidly.
  • EML Payments Ltd (ASX: EML) has seen its short interest remain steady at 8.7%. Short sellers may have concerns over the payments company’s valuation as rates rise and financial models are reassessed.
  • Omni Bridgeway Ltd (ASX: OBL) is back in the top ten with short interest of 8.3%. The litigation funder’s shares could be in the crosshairs of short sellers due to the Government wanting to overhaul class action laws.
  • AMA Group Ltd (ASX: AMA) has also returned to the top ten with 8.2% of its shares held short. Last month this crash repair company reported a loss of $46.3 million for the first half of FY 2022.
  • Zip Co Ltd (ASX: Z1P) has returned to the top ten despite its short interest easing to 7.8%. This buy now pay later provider’s shares have fallen heavily this year amid concerns over rising competition and increasing cash burn.

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 and has recommended Betmakers Technology Group Ltd, EML Payments, Kogan.com ltd, Nanosonics Limited, POLYNOVO FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended EML Payments, Kogan.com ltd, and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, 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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