Short sellers are targeting these ASX shares…
The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia. –
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) is now the most shorted ASX share despite its short interest falling week on week to 11.35%. Short sellers have been targeting the online travel agent amid concerns over the travel market recovery following the spread of the Delta variant.
Zip Co Ltd (ASX: Z1P) has seen its short interest reduce notably week on week to 10.7%. Short sellers appear to have been closing their positions following M&A activity in the BNPL industry.
Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease to 9.6%. Short sellers have been targeting this travel agent due to longer than expected delays in the travel market recovery.
Kogan.com Ltd (ASX: KGN) has short interest of 8.5%, which is down significantly week on week. Short sellers may be closing positions on the belief that lockdowns are boosting sales and helping the company work through its inventory issues.
Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.4% of its shares held short, which is up slightly week on week. Concerns over this communications, defence, and space company’s cash flows appear to be behind this.
Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is flat week on week. Fears over a major contract renewal with a supermarket giant continue to weigh on investor sentiment.
Tassal Group Limited (ASX: TGR) has short interest of 7.8%, which is down week on week. Weak salmon prices have been weighing on investor sentiment. Though, news that a rival is being taken over today could boost sentiment.
PolyNovo Ltd (ASX: PNV) has seen its short interest increase to 7.1%. Short sellers have been increasing their positions in this medical device company following a soft finish to FY 2021.
A2 Milk Company Ltd (ASX: A2M) has seen its short interest ease to 6.7%. Countless guidance downgrades, weakness in the daigou channel, and concerns over potential regulatory changes in China are weighing on its shares.
InvoCare Limited (ASX: IVC) has seen its short interest remain flat at 6.5%. Short sellers appear to be targeting this funerals company amid concerns that it is losing market share. This is despite its significant investment in acquisitions and its strategy.
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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 shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, POLYNOVO FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet Ltd. The Motley Fool Australia has recommended A2 Milk, Flight Centre Travel Group Limited, and InvoCare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson