These are the 10 most shorted shares on the ASX

Every Monday 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:

• Webjet Limited (ASX: WEB) remains the most shorted share on the Australian share market with short interest of 14.7%. Last week the online travel agent released a trading update which revealed that bookings are still down materially because of the pandemic.
• Speedcast International Ltd (ASX: SDA) has short interest of 10.6%. This communications satellite technology provider’s shares have been suspended since February. This was done in order to undertake a recapitalisation. It has now filed its restructuring plan and expects to emerge in the first quarter of 2021.
• InvoCare Limited (ASX: IVC) has short interest of 10%, which is up slightly week on week. Social distancing restrictions have been weighing on the funerals company’s performance this year.
• Myer Holdings Ltd (ASX: MYR) has seen its short interest fall again to 9.4%. Short sellers have been going after Myer this year due to the belief that its department stores will be left behind by the shift to online shopping.
• Mesoblast Limited (ASX: MSB) has seen its short interest rise again to 9.1%. Short interest has been building after the US FDA didn’t approve its remestemcel-L application for steroid-refractory acute graft versus host disease (SR-aGVHD). The company has also been hit with a class action this month.
• Inghams Group Ltd (ASX: ING) has 8.6% of its shares held short, which is down slightly week on week. This poultry company reported a 68.2% drop in net profit to $40.1 million for FY 2020. Unfavourable changes in its sales mix and higher input costs weighed on its performance.
• Galaxy Resources Limited (ASX: GXY) has seen its short interest fall to 8.5%. Concerns that an oversupply of lithium may keep prices of the battery making ingredient lower for longer could be behind this high level of short interest.
• Flight Centre Travel Group Ltd (ASX: FLT) has recorded a small rise in short interest to 8%. Rising COVID-19 cases globally are expected to delay the recovery of the global travel markets.
• CLINUVEL Pharmaceuticals Limited (ASX: CUV) has seen its short interest rise slightly to 7.6%. The biopharmaceutical company’s shares trade on sky high multiples. It appears as though short sellers don’t believe its growth justifies the premium.
• Metcash Limited (ASX: MTS) has entered the top ten with short interest of 7.4%. Given the positive trading conditions it is experiencing in the Food and Hardware markets, this high level of short interest is a bit of a mystery. Furthermore, analysts at Macquarie upgraded its shares to an outperform rating last week.

More reading

• ASX 200 Weekly Wrap: ASX snaps winning streak… just
• Brokers name 3 ASX shares to buy right now
• ASX 200 down 0.3%: NAB announces provisions, BlueScope impresses, Webjet higher
• Why Adore Beauty, BlueScope, Qantas, & Webjet shares are charging higher
• 1 ASX 200 share to buy before an effective COVID vaccine announcement

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and InvoCare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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