Ubisoft Stock Continues Its Rally, Gaining 3.5% Amid High Short Interest
The French video game publisher continues its rally from the previous day in a distinctly bullish Parisian market. The stock is among the top performers in the SBF 120, while short-selling pressure remains a significant issue for the stock.
The Stock Moves Above Its MM50 and Ranks Among the Top Gainers of the SBF 120
Ubisoft Entertainment stock is up 3.7% at €5.10 in mid-morning trading, within an SBF 120 that is up 0.71% and a CAC 40 that has risen by 0.74%. The stock ranks among the top gainers of the broader index, trailing behind Worldline, Exosens, and Atos. The rise occurs in a supportive market environment, fueled by the preliminary agreement between Washington and Tehran announced on Sunday, which extends the ceasefire and has already led to a nearly 4% drop in Brent crude the previous day. The rebound places the price above the MM50 (€4.92), with a positive gap of 3.7%, but the stock remains just below the MM20 at €5.14 and 15.6% below its MM200 at €6.05. The RSI at 48 indicates a still neutral momentum, without excess in either direction. Over three months, the performance stands at +27.4%, while the annual decline is still 44%.
High Net Short Positions Persist Despite a Slight Decrease Over a Month
According to reviewed statements, ten funds cumulate 13.33% of the capital sold short, a level that remains very high even though it has decreased by 1.44 points over a month (from 14.77% thirty days ago). This weight indicates that a significant portion of institutional participants remains positioned against the stock or seeks to cover exposure, without any clear intention being deducible. The recent easing suggests a beginning of coverage for some positions, to be confirmed in the coming weeks. As a reminder, the publisher had released its annual accounts for 2025-2026 on May 20, marked by a non-IFRS operating loss of 1.04 billion euros and a decline in net bookings of 17.4% to 1.53 billion euros. The group had then discussed a 'significantly stronger and more diversified' content pipeline for the fiscal years 2027-2028 and 2028-2029, and highlighted the reduction of its net debt from 885 million to 187.3 million euros. The next technical resistance point above the current price is at €5.63.
