Elior Shares Bounce 1.9%, But Short Sellers Pile Up
Elior Group's stock is recovering in early afternoon trading, in a Paris market sharply on the rise following the ECB's decision. However, the movement remains modest compared to the accumulated drop since last month's earnings warning. Short sellers continue to strengthen their positions on the stock.
Limited Technical Rebound After the Drop Following the Profit Warning
Elior Group's stock is up 1.88% at €2.00 in early afternoon trading, in an SBF 120 that is up 1.74% driven by the ECB's decision to raise interest rates. The weekly rebound reaches 5.15%, but the stock remains heavily penalized over the month, with a decline of 26.61% following the announcement of lowered annual targets on May 21. The company had then revised its organic growth forecast from 3-4% to 1-2% and its adjusted EBITA margin to 3%, from an initially targeted 3.5-3.7%. Technically, the recovery remains fragile: the price is still well below its 20-day moving average (€2.13, a gap of -6.01%) and significantly under its 200-day moving average at €2.62. The RSI at 36 indicates seller exhaustion without signaling a clear turnaround, as the stock approaches its support at €1.86, tested at the end of May during the three-year low.
Short Positions Climb to Nearly 6% of Capital, Signaling Persistent Distrust
The bearish bet continues to thicken on the stock. According to reviewed declarations, seven funds now cumulatively hold 5.92% of the capital sold short, up from 3.70% a month ago, marking an increase of 2.22 points in thirty days. This rapid accumulation, already high for a French mid-cap, reflects the maintenance of an unfavorable institutional positioning on the stock since the earnings warning. Without prejudging the precise intentions of these players, this level of short interest deserves attention as it can amplify movements in both directions: a further deterioration of fundamentals or a possible reversal of sentiment would be mechanically magnified. During the publication of the first half of fiscal year 2025-2026 (May 20, 2026), management also mentioned a leverage ratio of about 3.5x at the end of September 2026, a point that will remain under scrutiny.
