These are the 10 most shorted shares on the ASX

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:

• Webjet Limited (ASX: WEB) remains the most shorted share on the ASX but only just. This week the online travel agent’s short interest has fallen by 200 basis points to 12.5%. Some short sellers may have been locking in returns after a recent and sharp pullback in the Webjet share price.
• Tassal Group Limited (ASX: TGR) isn’t far behind with short interest of 12.2%. Short sellers appear to be targeting the seafood company amid concerns that China could slap duties on Australian seafood.
• Northern Star Resources Ltd (ASX: NST) has seen its short interest jump to 10.3%. It appears as though some short sellers aren’t convinced by its merger with fellow gold miner Saracen Mineral.
• Speedcast International Ltd (ASX: SDA) has short interest of 9.3%. This communications satellite technology provider’s shares have been suspended for over a year while it undertakes a recapitalisation.
• Inghams Group Ltd (ASX: ING) has 8.6% of its shares held short, which is flat week on week. This poultry company was a poor performer in FY 2020 due to COVID-19 headwinds and higher input costs. Short sellers don’t appear confident that FY 2021 will be much better.
• Mesoblast limited (ASX: MSB) has seen its short interest fall week on week to 8.6%. Short sellers may have been closing positions last week following the release of a positive trial update.
• Western Areas Ltd (ASX: WSA) has seen its short interest rise to 8.4%. This appears to have been driven by a disappointing first half production update and issues at its Flying Fox operation.
• AVITA Medical Inc (ASX: AVH) has seen its short interest slide week on week to 7.8%. Short sellers will have been pleased to see the medical device company’s shares tumble lower last week following the release of its second quarter update.
• Service Stream Limited (ASX: SSM) is back in the top ten with short interest of 7.3%. The essential network services company’s shares have come under pressure this year amid mixed contract updates.
• Myer Holdings Ltd (ASX: MYR) has 7.1% of its shares held short, which is down slightly week on week. There are concerns the pandemic could accelerate the structural pressures the department store operator is facing.

More reading

• Why ASX travel shares were smashed on Friday
• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• 5 things to watch on the ASX 200 on Monday
• Is the Webjet (ASX:WEB) share price a buy right now?
• Why AVITA, Baby Bunting, Kathmandu, & Webjet shares are sinking

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Avita Medical Limited and Service Stream Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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