Kogan.com Ltd (ASX:KGN) and Zip Co Ltd (ASX:Z1P) shares are among the most shorted shares on the ASX this week…
The post These are the 10 most shorted shares on the ASX 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 back as the most shorted ASX share after its short interest rose to 9.9%. Concerns over its valuation and a longer than expected recovery in the tourism market appear to be the reason for the poor sentiment.
- Tassal Group Limited (ASX: TGR) isn’t far behind with short interest of 9.8%, which is down slightly week on week. Short sellers have been going after this seafood company due to weak salmon prices and Australia-China trade war concerns.
- Resolute Mining Limited (ASX: RSG) has seen its short interest ease week on week to 9.7%. This gold miner has seen its shares crash lower this year due to weak production, disappointing guidance, and issues at its Bibiani operation in Ghana.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 9.1%, which is down slightly week on week. As with Webjet, this may be driven by concerns over its valuation and the stalling travel market recovery.
- Inghams Group Ltd (ASX: ING) has 8% of its shares held short, which is down week on week. This poultry company has recently lost its CEO and is understood to be negotiating a major contract with Woolworths Group Ltd (ASX: WOW).
- Kogan.com Ltd (ASX: KGN) is a new entry into the top ten with short interest of 7.9%. Inventory issues and its slowing growth could be the reason short sellers are targeting Kogan.
- Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 7.5%. Short sellers have been increasing their positions after the online furniture and homewares retailer announced plans to invest materially in its growth at the expense of margins.
- Metcash Limited (ASX: MTS) has seen its short interest rise slightly to 7.4%. This appears to have been driven by concerns over a potential supermarket price war.
- Zip Co Ltd (ASX: Z1P) has short interest of 7.3%, which is up slightly week on week. Valuation concerns and execution risks relating to its international expansion could be weighing on sentiment.
- Megaport Ltd (ASX: MP1) has short interest of 7.2%, which is up again week on week. Unfortunately for short sellers, the Megaport share price was the best performer on the ASX 200 in April with a 30% gain.
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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 recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, Kogan.com ltd, MEGAPORT FPO, and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.