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 share on the ASX for another week after its short interest rose to 17.3%. Some traders appear to believe the market is too optimistic on the travel industry recovery.
  • Betmakers Technology Group Ltd (ASX: BET) has seen its short interest surge to 16.6%. This betting technology company’s shares have fallen heavily this year amid valuation and cash burn concerns.
  • Nanosonics Ltd (ASX: NAN) has short interest of 12.2%, which is down week on week. Uncertainty caused by a major change to this medical device company’s sales model in the United States has put pressure on its shares.
  • Polynovo Ltd (ASX: PNV) has seen its short interest rise to 10.6%. This is despite the medical device company reporting heavy insider buying recently. Though, there is a lag with short seller data, so we may not know if short sellers have been spooked into closing positions by the insider buying until next week.
  • Kogan.com Ltd (ASX: KGN) has seen its short interest ease to 10.1%. Short sellers have been going after this ecommerce company due to its poor performance and rising competition from Amazon.
  • EML Payments Ltd (ASX: EML) has seen its short interest remain flat at 10%. This payments company has become a target of short sellers after it downgraded its profit guidance following a tough third quarter. There are regulatory concerns also weighing on sentiment.
  • Webjet Limited (ASX: WEB) has short interest of 9.6%, which is up week on week. This online travel agent is releasing its half year results later this week. Judging by the increase in short interest, short sellers aren’t expecting a strong result or guidance.
  • Appen Ltd (ASX: APX) has seen its short interest rise to 9.15%. There are concerns that Appen could be facing softening demand due to some companies taking parts of their machine learning in-house.
  • AMA Group Ltd (ASX: AMA) has 9.1% of its shares held short, which is up week on week once again. There are concerns about this smash repair company’s high debt load and dwindling cash balance.
  • Redbubble Ltd (ASX: RBL) is back in the top ten with short interest of 8.9%. A disappointing underperformance in FY 2022 and less effective marketing for ecommerce companies (from privacy changes) have been weighing on sentiment and Redbubble’s shares.

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. has positions in and has recommended Appen Ltd, Betmakers Technology Group Ltd, EML Payments, Kogan.com ltd, Nanosonics Limited, POLYNOVO FPO, and REDBUBBLE FPO. The Motley Fool Australia has positions in 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 Scott Phillips.

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