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:
- Betmakers Technology Group Ltd (ASX: BET) remains the most shorted ASX share even though its short interest easing for a second week in a row to 15.1%. Despite losing a third of their value in 2022, short sellers appear to believe this betting technology company's shares can keep falling.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest fall to 14.3%. Short sellers don't appear confident that the travel market recovery will be smooth sailing for Flight Centre.
- Block Inc (ASX: SQ2) has seen its short interest fall to 11.5%. Short sellers will have been disappointed to see this payments company's shares jump last week amid a rebound in the tech sector on softer interest rate expectations.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.3%, which is down slightly week on week. Inflationary pressures have been weighing on this pizza chain operator's performance.
- Perpetual Limited (ASX: PPT) has seen its short interest rise to 10.6%. Short sellers have been increasing their positions after the fund manager was pressured into completing its acquisition of Pendal Group Ltd (ASX: PDL).
- Megaport Ltd (ASX: MP1) has seen its short interest rebound slightly to 10.5%. Short sellers aren't giving up on this network as a service operator's shares despite them rising 21% since this time last month.
- Sayona Mining Ltd (ASX: SYA) has 9.9% of its shares held short, which is up week on week. Short sellers may be targeting this lithium developer due to valuation concerns.
- Nanosonics Ltd (ASX: NAN) has short interest of 8.5%, which is down week on week. Short sellers appear to have been closing positions since the release of a reasonably positive sales update. Though, it is worth noting that no commentary was made on its margins, which is understood to be one of the key reasons short sellers are targeting the company.
- Lake Resources N.L. (ASX: LKE) has short interest of 8.4%, which is up slightly week on week. Short sellers continue to have doubts over Lake's ability to produce battery grade lithium at scale from its Kachi operation.
- Breville Group Ltd (ASX: BRG) has seen its short interest once again slide to 8.2%. Short sellers have been closing positions following the release of the appliance manufacturer's first quarter update.
