These are the 10 most shorted ASX shares

Short sellers are targeting these ASX shares…

a line up of young boys from tallest to shortest against a blackboard where a mathematical equation appears written above each of their heads.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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 10%. Short sellers aren't giving up on the online travel agent despite its trading update which revealed a significant improvement in the performance of its WebBeds business.
  • Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest fall slightly week on week to just under 10%. Short sellers continue to hold onto their positions despite the travel agent expecting to reach profitability again during FY 2022.
  • Electro Optic Systems Hldg Ltd (ASX: EOS) has 9.2% of its shares held short, which is up week on week. Short sellers have been targeting this defence and space company due to accounting and cash generation concerns.
  • Zip Co Ltd (ASX: Z1P) has seen its short interest ease week on week to 9.2%. This appears to have been driven by concerns over rising costs and increasing competition in the BNPL space.
  • Kogan.com Ltd (ASX: KGN) has short interest of 8.6%, which is down week on week. This high level of short interest appears to have been driven by fears that the ecommerce company's inventory woes will weigh on its performance for a little while longer.
  • Piedmont Lithium Inc (ASX: PLL) has short interest of 8.4%, which is up since last week. Valuation and mining license approval concerns appear to be weighing on sentiment.
  • Mesoblast limited (ASX: MSB) is back in the top ten with short interest of 8.1%. The biotech company is burning through cash and has warned that it may need to raise funds if deals aren't successfully executed in FY 2022.
  • Inghams Group Ltd (ASX: ING) has 8% of its shares held short, which is flat week on week. Short sellers continue to target the poultry company despite it extending its key supply contract with Woolworths Group Ltd (ASX: WOW).
  • Cooper Energy Ltd (ASX: COE) has 7.7% of its shares in the hands of short sellers, which is up sharply week on week. This appears to have been driven by the poor performance of its Project Sole.
  • Redbubble Ltd (ASX: RBL) is back in the top ten with short interest of 7.7%. Short sellers may be targeting this ecommerce company following a severe deceleration in its growth during the fourth quarter of FY 2021.

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, 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 Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will now cut interest rates

Will borrowers need to wait until the middle of next year for relief? Let's find out.

Read more »

Boys making faces and flexing.
Opinions

3 ASX 300 shares to buy and hold for the long run

I believe these stocks have loads of growth potential.

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

Two people tired and resting after sports race.
Broker Notes

Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential

Blackwattle Investment Partners sees these 2 ASX 200 stocks as worthy of a buy and hold strategy.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »