Here are the 10 most shorted ASX shares

Short sellers are currently targeting these ASX shares…

shadow bear with woman terrified and a falling share price

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:

  • Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most share despite reporting a sizeable week on week reduction in short interest to 14.6%. Short sellers appear doubtful on the travel market recovery.
  • Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 14.1%. Last month, this betting technology company posted a massive $89.2 million loss in FY 2022. Given the market's current dislike for loss-makers, it isn't surprising to see short sellers target the company.
  • Lake Resources N.L. (ASX: LKE) has short interest of 10.1%, which is up slightly week on week. Short sellers aren't giving up on this lithium developer's shares despite a huge rally recently. Doubts over its DLE technology and a shock CEO departure recently are partly to blame for this short interest.
  • Block Inc (ASX: SQ2) has short interest of 10%, which is down slightly week on week yet again. This short interest appears to have been driven by concerns over a potential US recession and the market's aforementioned dislike of loss-making tech stocks.
  • Zip Co Ltd (ASX: ZIP) has seen its short interest rise slightly to 9.8%. Short sellers appear doubtful that this buy now pay later provider's cost cutting plans will lead to it becoming profitable in the coming years.
  • City Chic Collective Ltd (ASX: CCX) has short interest of 9.05%, which is down slightly since last week. Short sellers have been loading up on this plus sized fashion retailer's shares since the release of a very disappointing full year result which revealed the tripling of its inventory position and negative cash flow.
  • Nanosonics Ltd (ASX: NAN) has short interest of 8.6%, which is down materially week on week. Short sellers have been targeting this infection prevention company's shares due to concerns over sales disruption from a business model change in the key US market.
  • De Grey Mining Limited (ASX: DEG) has short interest of 8.3%, which is also down materially week on week. Short sellers will have been disappointed to see this gold developer's shares surge higher last week following an update on its Mallina Gold Project.
  • EML Payments Ltd (ASX: EML) has returned to the top ten with short interest of 8%. This embattled payments company's European operations are dealing with major regulatory issues at the moment.
  • Pointsbet Holdings Ltd (ASX: PBH) has entered the top ten with short interest of 7.8%. Concerns over this sport betting company's cash burn have been weighing on sentiment greatly.

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, Nanosonics Limited, Pointsbet Holdings Ltd, 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 Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Man in mining hat with fists raised and eyes closed looking happy and excited about the Newcrest share price
Share Market News

Why BHP and these ASX dividend stocks are buys

The mining giant and these shares have been named as buys by brokers.

Read more »

a woman holds her finger to the side of her face and looks upwards as she thinks about something.
Share Market News

Where to invest when the ASX 200 hits an all time high?

With the ASX creeping towards a record high, here are some options to consider

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Share Market News

5 things to watch on the ASX 200 on Friday

Will the market end the week on a positive note? Let's find out.

Read more »

Young man with a laptop in hand watching stocks and trends on a digital chart.
Share Market News

Which investment trends drove equity markets in May according to Macquarie?

The ASX 200 increased 4.2% in May.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a miserly session for investors today.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Opinions

Too high? These 2 ASX shares might be due for a correction

These popular blue chips are looking dicey to me.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX 200 shares could rise 20% to 35%

These shares are being tipped to deliver market-beating returns by analysts.

Read more »

Keyboard button with the word sell on it.
Broker Notes

8 ASX All Ords stocks downgraded to sell ratings

Find out which shares are out of favour with the experts.

Read more »