Teleperformance Shares Bounce 3.5%, but Short Sellers Hold On
Midday sees a notable rise in Teleperformance shares within a slightly advancing SBF 120. The stock climbs to the top of the broader index rankings after several weeks of significant undervaluation. However, the bearish bet on the capital remains firmly in place and continues to grow.
A Rebound that Softens the Monthly Decline but Doesn't Erase the Annual Discount
Teleperformance shares gain 3.34% to €51.94, marking one of the strongest increases in the SBF 120 this Friday, July 10. This movement mitigates the monthly decline, which remains significant at nearly 10%, while the annual performance is still heavily negative at -41.48%. Over three months, the stock now limits its gain to 4.65%. Today's rebound occurs in a market cautiously trending upwards, with the CAC 40 up 0.17% and the SBF 120 up 0.19%, while the VIX drops nearly 6% to 15.91. Despite this breath of fresh air, the stock remains below its three key moving averages (MM20 at €58.12, MM50 at €60.73, MM200 at €58.67), with a gap close to 11% to the MM200. The RSI at 36 indicates the exhaustion of sellers over the past weeks, without yet signaling a clear turnaround. The resistance at €75.64 remains out of reach in the short term, while the recently broken support at €53.06 now acts as an immediate ceiling. According to the consensus of surveyed analysts, the stock is trading at about 3.9 times the earnings expected for the current fiscal year and 3.7 times those of the next year, a valuation level that reflects the persistent market distrust in the stock.
Bearish Bet on Capital Continues to Grow, Reaching 11.85%
Selling pressure remains a notable feature of the stock. According to reviewed statements, nine funds accumulate a net short position of 11.85% of the capital, an increase of 1.49 points over thirty days (from 10.36% a month ago). This high level for an SBF 120 stock reflects a settled distrust from institutional investors positioned against the stock or looking to hedge a sectoral exposure. The gradual increase in combined exposure over the past month suggests that today's rebound has not yet convinced short sellers to withdraw, without necessarily indicating a clear signal on the price trajectory. The technical rebound today gives the stock some breathing room, but the gap to the MM200 (€58.67) remains a parameter to watch to gauge the strength of the recovery. The next step will be the reconquest, or not, of the support-turned-resistance at €53.06.
