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:
- Flight Centre Travel Group Ltd (ASX: FLT) has returned to the top spot with short interest of 14.3%. Short sellers appear to be targeting the travel agent giant amid concerns over the travel market recovery due to the cost of living crisis.
- Betmakers Technology Group Ltd (ASX: BET) has dropped from the top spot after its short interest dropped 12.9%. With this betting technology company's shares down over 60% since the start of the year, some short sellers may believe they have bottomed now and are closing positions.
- Perpetual Limited (ASX: PPT) has seen its short interest rise to 11.6%. Short sellers have been loading up on this fund manager's shares after it was pressured into completing its acquisition of Pendal Group Ltd (ASX: PDL).
- Megaport Ltd (ASX: MP1) has seen its short interest remain flat 10.5%. Weakness in the tech sector and a soft start to FY 2023 appear to be why short sellers are targeting this network as a service operator's shares.
- Sayona Mining Ltd (ASX: SYA) has 9.6% of its shares held short, which is down week on week. Short sellers appear to have concerns over the valuation of this lithium developer given recent forecasts for declining lithium prices.
- Lake Resources N.L. (ASX: LKE) has short interest of 8.7%, which is up week on week. Short sellers believe Lake could be having issues producing battery grade lithium at scale from its Kachi operation.
- Nanosonics Ltd (ASX: NAN) has short interest of 8.5%, which is flat week on week. There are concerns over this medical device company's margins due to a major sales model change in the US.
- Zip Co Ltd (ASX: ZIP) has returned to the top ten with short interest of 8.2%. Short sellers appear to believe that the buy now pay later provider will struggle to achieve profitability as targeted.
- Breville Group Ltd (ASX: BRG) has seen its short interest slide again to 8.1%. Short sellers continue to close positions following the recent release of the appliance manufacturer's first quarter update.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 7.1%, which is down materially week on week. Short sellers may be closing positions on the belief that headwinds are now easing for the pizza chain operator.
