Here are the 10 most shorted ASX shares

Short sellers are currently targeting these ASX shares…

The words short selling in red against a black background

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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) remains the most shorted share on the ASX after its short interest rose to 15.5%. Concerns over the travel market recovery saw Flight Centre's shares sink to a 52-week low last week.
  • Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease slightly to 13.9%. This betting technology company's shares appear to have been targeted due to their lofty valuation and its cash burn.
  • Block Inc (ASX: SQ2) has seen its short interest rise slightly to 10.6%. Short sellers may be going after this payments company due to tech sector weakness, concerns over the prospects of a global recession, and regulatory pressure in the BNPL industry.
  • Lake Resources N.L. (ASX: LKE) has short interest of 10.4%, which is up week on week. A short report from a renowned short seller reveals that it is targeting the company largely due to doubts over its DLE technology.
  • Megaport Ltd (ASX: MP1) has seen its short interest rise to 9.8%. Valuation concerns and significant weakness in the tech sector are likely to be behind this short interest.
  • Nanosonics Ltd (ASX: NAN) has short interest of 8.1%, which is up slightly week on week. Short sellers continue to target this infection prevention company amid concerns over its disruptive business model change in the key US market.
  • Breville Group Ltd (ASX: BRG) has seen its short interest rise to 7.8%. This may be due to concerns over what the uncertain economic backdrop could mean for consumer spending.
  • Inghams Group Ltd (ASX: ING) has short interest of 7.8%, which is down slightly week on week. Concerns over higher input costs may be behind this short interest.
  • Zip Co Ltd (ASX: ZIP) has seen its short interest rebound slightly to 7.8%. Doubts over the company's profitability targets have been weighing on sentiment this year.
  • Perpetual Limited (ASX: PPT) has entered the top ten with short interest of 7.6%. This fund manager's shares have dropped 36% in 2022. It appears as though short sellers see more pain ahead.

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., MEGAPORT FPO, Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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