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) continues to be the most shorted share after its short interest rose to 15.2%. With living costs rising and squeezing budgets, short sellers appear to believe the travel market recovery could falter.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 12.8%. Last week this betting technology company posted a 371% increase in revenue to $91.7 million but a whopping $89.2 million loss.
• De Grey Mining Limited (ASX: DEG) has leapt into the top ten out of nowhere after its short interest surged to 11%. Short sellers seem to believe the market is too optimistic on the development of the Mallina Gold Project.
• Block Inc (ASX: SQ2) has short interest of 10.8%, which is down slightly week on week once again. However, the remaining short sellers will be pleased to learn that the payments company’s shares are expected to crash lower on Monday following a selloff on Wall Street.
• Nanosonics Ltd (ASX: NAN) has short interest of 10.6%, which is down slightly week on week. This infection prevention company’s shares sank deep into the red last week after the release of a disappointing result. Rising costs and new product launch delays weighed on sentiment.
• Lake Resources N.L. (ASX: LKE) has short interest of 10%, which is flat week on week. Short sellers aren’t giving up on this lithium developer despite a significant rally recently. There are doubt over the validity of its DLE technology.
• Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 9.6%. Short sellers will have been pleased to see this buy now pay later provider’s shares tumbled last week after it reported another large loss.
• Inghams Group Ltd (ASX: ING) has short interest of 8.4%, which is up week on week. Short sellers have been loading up on this poultry company’s shares after the release of a disappointing result driven by higher input costs.
• Regis Resources Limited (ASX: RRL) has short interest of 8.3%, which is down week on week again. Production issues have been weighing on this gold miners shares this year.
• Megaport Ltd (ASX: MP1) has seen its short interest fall to 7.7%. Concerns over this network as a service provider’s valuation could be behind this high level of short interest. Based on Macquarie’s estimates, Megaport’s shares trade at ~88x FY 2024 earnings.

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

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• Here are the top 10 ASX 200 shares today
• Here’s why UBS tips the Zip share price to halve
• BetMakers share price pops then drops as full-year revenue leaps 370%
• Zip’s FY22 loss is 165% of its market cap. So why did its shares go up?

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. has positions in and has recommended Betmakers Technology Group Ltd, Block, Inc., EML Payments, MEGAPORT FPO, Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., EML Payments, and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and MEGAPORT FPO. 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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