Ubisoft Shares Drop 2%, Consolidating After Recent Rally
In early afternoon trading, the French video game publisher is marking time in a downward trending Parisian market. The stock is digesting several sessions of gains following the post-annual results shock in mid-May. Short positions remain particularly prevalent in the stock.
Stock Dips After 9% Monthly Rebound, Resistance at €5.63 Remains Out of Reach
Ubisoft's stock is down 1.97% at €5.39, while the SBF 120 index has fallen 0.37%. The stock is among the less well-performing stocks of the SBF 120, though not among the most extreme declines. This pullback follows a strong dynamic: the stock is still up 9.03% over the month and 33.04% over three months, despite a nearly 45% loss over the year.
The movement remains consistent with a consolidation, with an RSI at 61 indicating a still positive dynamic without excess. The price is above the MM20 (€5.18) and significantly above the MM50 (€4.72, a 14.15% gap), but remains 13.65% below the MM200 at €6.24. The identified resistance at €5.63, not breached during the recent rebound, marks the next graphical barrier before a potential return to the long-term average.
Short Sellers Maintain 14.34% Pressure on Capital
According to reviewed declarations, eleven funds hold a net short position of 14.34% of the capital, a slight decrease of 0.44 points over thirty days (from 14.78% a month earlier). The level remains particularly high for a SBF 120 stock and signals persistent institutional mistrust, despite the recent technical rebound. The near-stability of the total over the month indicates that sellers have not significantly reduced their bearish bet, despite the +33% over three months. This pressure should be interpreted with caution: it reflects the market's prudence about the financial trajectory of the group, without prejudging any upcoming movement.
The annual accounts published on May 20 reported a non-IFRS operating loss of €1,044.7 million and a 17.4% decline in net bookings, offset by a net debt reduced to €187.3 million. At this publication, the management discussed a stronger content pipeline for 2027-28 and 2028-29, key horizons to validate the recovery thesis.
