Ubisoft Stock Dips 3.83%, Short Sellers Pressure Remains High
The French video game publisher loses ground this Thursday noon, going against a generally positive Parisian market trend. The stock is erasing some of the gains made after the mid-May annual earnings release, as the pressure from short sellers continues to be significant.
The stock dips below its 20-day moving average in a bullish Parisian market
Ubisoft's stock falls by 3.83% to €5.12 at midday, while the CAC 40 is up by 0.85% and the SBF 120 by 0.80%. The stock is among the biggest losers in the SBF 120, following the likes of Soitec, Vivendi, and STMicroelectronics. The stock has dipped below its 20-day moving average (€5.20) by 1.58%, after flirting with this threshold in recent sessions. However, it still remains above the 50-day moving average (€4.75), reflecting the rebound from the post-results low. The 200-day moving average, at €6.22, stands 17.72% above the current price, indicating an annual decline of nearly 48%. The RSI at 55 remains neutral, showing no signs of exhaustion, while the technical support identified at €4.68 remains distant. This session follows the announcement on Tuesday of the Rayman Legends Retold remake, scheduled for release on October 1st.
Short positions hold steady at 14.34% of capital, a legacy of a painful annual report
According to reports, eleven funds hold a cumulative 14.34% of the capital sold short, a notably high level for an SBF 120 stock. This figure has slightly decreased over thirty days (-0.44 point, from 14.78% a month ago), without initiating a real easing. Such a concentration reflects a continued skepticism from institutional investors who were still betting on a decline at the beginning of June; while this number should not be viewed in isolation, it signals a cautious climate to monitor in the coming weeks. This pressure follows the annual accounts for 2025-2026 published on May 20th, which reported a non-IFRS operating loss of €1,044.7 million and a 17.4% decline in net bookings. The company then reported a net debt reduction from €885 million to €187.3 million and anticipated a strengthened content pipeline for the fiscal years 2027-28 and 2028-29. The stock has gained 30.49% over three months, but remains heavily down over one year. The next graphical milestone for holders to watch is the 50-day moving average at €4.75, the last cushion before the support at €4.68.
