These are the 10 most shorted ASX shares

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) has returned to the top of the charts after its short interest rose to 15.3%. Short sellers are likely to have been disappointed to see its shares shoot higher last week after international border reopening plans were announced.
• Kogan.com Ltd (ASX: KGN) has seen its short interest ease to 10.8%. Short sellers have been targeting this ecommerce company due to its continued underperformance and concerns over its inventory management and higher marketing spend.
• Zip Co Ltd (ASX: Z1P) has seen its short interest rise week on week to 10.6%. Buy now pay later shares have fallen out of favour with investors over the last few months and short sellers have been benefiting greatly.
• Webjet Limited (ASX: WEB) has short interest of 10%, which is up week on week. This online travel agent’s shares are being targeted due to concerns over COVID disruptions. However, the border reopening sent its shares hurtling higher last week, much to the dismay of short sellers.
• Mesoblast limited (ASX: MSB) has short interest of 9.8%, which is up slightly week on week. This biotech has been targeted due to poor trial results, significant cash burn, and the loss of a major deal with Novartis.
• Polynovo Ltd (ASX: PNV) has seen its short interest rise to 8.8%. The high multiples that this medical device company’s shares trade on appear to have caught the eye of shorts. Particularly given its mixed performance.
• Betmakers Technology Group Ltd (ASX: BET) has 8.7% of its shares held short, which is up week on week again. The sky high multiples that this betting technology company’s shares trade on could be behind this.
• Magellan Financial Group Ltd (ASX: MFG) has entered the top ten with short interest of 8.3%. The poor performance of its funds, ongoing funds outflows, and the temporary exit of its CIO are weighing heavily on sentiment.
• Block Inc (ASX: SQ2) has entered the top ten with short interest of 7.8%. This payments company’s shares are under pressure amid valuation concerns and the prospect of rising rates.
• Temple & Webster Group Ltd (ASX: TPW) is back in the top ten with short interest of 7.7%. Concerns over higher marketing costs could be weighing on this online furniture retailer’s shares.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

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• Why these 2 All Ordinaries BNPL shares are plunging to 52-week lows
• Why the Webjet (ASX:WEB) share price is a seriously undervalued ASX share: expert
• 3 reasons why the Temple & Webster (ASX:TPW) share price is a buy after its plunge: experts
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Betmakers Technology Group Ltd, Block, Inc., Kogan.com ltd, POLYNOVO FPO, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, Temple & Webster Group Ltd, and Webjet Ltd. 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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