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 despite its short interest falling meaningfully week on week to 15.2%. There are concerns that rising living costs could impact consumer spending on leisure travel and stifle the recovery.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest drop to 12.6%. Short sellers won’t have been happy to see this betting technology company’s shares jump last week after announcing a share buyback.
- Nanosonics Ltd (ASX: NAN) has short interest of 12%, which is down slightly week on week. Short sellers have been going after this medical device company due to concerns over changes to its sales model in the United States.
- EML Payments Ltd (ASX: EML) has short interest of 10.1%, which is up meaningfully week on week. Short sellers have been loading up on this payments company’s shares since the release of a surprisingly poor trading update.
- Block Inc (ASX: SQ2) has short interest of 9.8%, which is up week on week once again. This mirrors the short interest of the company’s shares on Wall Street.
- Regis Resources Limited (ASX: RRL) has short interest of 8.9%, which is down slightly week on week. This short interest appears to have been driven by concerns over labour shortages, cost pressures, and lower grades.
- PolyNovo Ltd (ASX: PNV) has seen its short interest ease to 8.8%. This medical device company’s shares are down materially over the last 12 months following a disappointing operating performance.
- Inghams Group Ltd (ASX: ING) has 8.6% of its shares held short, which is down week on week. There are concerns that this poultry company’s profits could be squeezed by higher input costs.
- PointsBet Holdings Ltd (ASX: PBH) has entered the top ten with short interest of 8.4%. Short sellers may be regretting this one after the sports betting company’s shares rocketed last week following a strategic investment.
- Webjet Limited (ASX: WEB) has sneaked back into the top ten with short interest of 8.1%. Fears that cost of living pressures could delay the travel market recovery are weighing on sentiment.