Short Selling

Short Selling Report: ATOS SE (ATO.PA)

Atos is a French multinational information technology service and consulting company. It specializes in Hi-tech transactional services, unified communications, cloud, big data, and cybersecurity services. It is publicly listed on the Euronext Paris Stock Exchange with a market capitalization of €1.403 billion as of 4th July 2022.

Since the start of the quarter on 1st April 2022, of the 110.763 million shares outstanding, approximately 3.53% or 3.909 million were shorted, coming to a net of €95.285 million. The shares were shorted by 3 managers: Namely GREENVALE CAPITAL LLP, GLADSTONE CAPITAL MANAGEMENT LLP and KINTBURY CAPITAL LLP.

On 30th June 2022, of the 110.763 million shares outstanding, almost 8.67% or 9.603 million were shorted, coming to a net of €122.777 million. The shares were shorted by 7 managers. These were MARSHALL WACE LLP, WORLDQUANT LLC, GREENVALE CAPITAL LLP, GLADSTONE CAPITAL MANAGEMENT LLP, SCHONFELD STRATEGIC ADVISORS LLC, SCHONFELD STRATEGIC UK MASTER and KINTBURY CAPITAL LLP.

Among these, GREENVALE CAPITAL LLP shorted the highest percentage of 2.3% of the total shares outstanding. The shorted shares rose by 146% from the start of the quarter with the stock price declining by nearly 91% from a closing price of €24.37 as of 1st April 2022.

Based on the fundamental analysis, the company has been performing poorly in the first quarter commencing on January 01, 2022. The revenue of the company decreased by 0.6% in comparison to the same quarter last year. The reason for this was primarily the timing of contract renewals and the decline in the average duration of new contracts.

According to the company’s press release on 14th June 2022, Atos is expecting a possible spinoff to separate into two publicly traded companies: these will be named SpinCo (Evidian) and TFCo (Atos). The project involves a prior reorganization expected to be completed during the second half of 2023 with the listing and distribution of SpinCo shares completed by the end of 2023.

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