eDreams stock rally gains momentum as short sellers reduce positions

Short sellers are reducing their positions in eDreams, supporting a significant stock rally. Several major investors, including Capital Fund, Marshall Wace, Two Sigma, and Tages Capital, decreased their short positions during August.

While the US hedge fund Citadel increased its short position to 0.5%, the overall trend shows a reduction in downward pressure. The stock has gained approximately 36% so far this year and has risen over 103% from its 52-week low of 2.68 euros. Analysts via Bloomberg suggest a potential upside of 14.5%, with a consensus valuation of 6.23 euros.

The upward momentum follows a July 22 shareholder meeting approval for capital reductions of up to 12 million shares, representing 10.38% of capital, aimed at increasing shareholder value. Major asset managers have also increased their stakes: Goldman Sachs has expanded its holding to 9%, UBS nearly doubled its position to 6%, and DWS increased its participation to 3.59%.