Teleperformance Shares in the Crosshairs of Short Sellers Despite Rebound
Teleperformance shares continue their recovery in mid-afternoon trading, after a turbulent stock market period influenced by dividend detachment and a large refinancing operation. The stock is performing within an upward trending SBF 120, though not among the top gainers of the index. Focus now shifts to the high short positions maintained on the stock.
A Technical Rebound Extending Last Week's Surge
Teleperformance shares are up 1.94% at €64.26 during the session, extending the rebound of over 5% recorded in the last session on Friday. This movement follows the dividend detachment and the completion of a €600 million bond buyback on May 27. However, the stock is still down 11% for the week, weighed down by these two events. The price is currently 4.19% below the 20-day moving average (€67.07), but maintains a cushion of 10.91% above the 50-day moving average (€57.94). The RSI at 48 indicates a neutral setup, aligning with the moderate rebound observed. Over three months, the performance remains solid at nearly 25%, while the stock is still down 27.8% year-on-year. According to the consensus of surveyed analysts, the stock is trading at approximately 4.8 times the earnings of the current fiscal year, a low multiple reflecting skepticism surrounding the outsourced customer relationship sector amid the rise of conversational agents.
Short Sellers Firmly Embedded in the Company's Capital
According to reviewed declarations, ten funds cumulatively hold 11.64% of the capital sold short as of May 28, a high level indicating significant exposure to short positions. This total has decreased by 1.17 points over thirty days (it was 12.81% a month ago), indicating that some participants have started to reduce their short positions since the April-May rally. This stock of short positions remains a factor of technical volatility: a marked bullish movement can force some of the sellers to buy back their shares, thereby amplifying the rebound. Today's session fits into this dynamic, without indicating a lasting change in market sentiment. The exact motivations of the positioned funds remain unknown, but the cumulative level reflects ongoing caution around the group's trajectory. Technically, the €67 zone (20-day moving average) remains the next identifiable barrier above the current price, while the support at €53.80 limits the bearish scenario.
