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When considering stocks, it's always helpful to gauge what the rest of the market thinks. One source for that is the number of shares shorted. Companies seeing significant increases in shares shorted are being viewed more negatively, and vice-versa.

We ran a screen on the tech sector for stocks seeing the most significant decreases in shares shorted month-over-month. This indicates that short sellers are less bearish on these names than they were before.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks will outperform too? Use this list as a starting point for your own analysis.

List sorted by decrease in shares shorted as a percent of share float.

1. Ancestry.com Inc. (NASDAQ:ACOM): Operates as an online resource for family history for subscribers worldwide. Market cap at $1.37B, most recent closing price at $31.59. Shares shorted have decreased from 5.85M to 3.26M over the last month, a decrease which represents about 8.78% of the company's float of 29.51M shares. Days to cover ratio at 3.27 days.

Clues to recent bullishness: As of November 26 this stock has been upgraded by TheStreet Ratings from hold to buy. According to TheStreet "The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and notable return on equity." Yet, should be noted that its rating was lowered to "hold" from "buy" at Cantor Fitzgerald on the 27th.

2. Cymer Inc. (NASDAQ:CYMI): Engages in the development, manufacture, and marketing of excimer light sources for the manufacturers of photolithography tools in the semiconductor equipment industry. Market cap at $2.5B, most recent closing price at $83.63. Shares shorted have decreased from 2.67M to 1.37M over the last month, a decrease which represents about 4.51% of the company's float of 28.84M shares. Days to cover ratio at 1.97 days.

Clues to recent bullishness: A positive correlation to the VIX index: Correlation with the VIX index at 0.529 over the last 60 days. This stock also has a Price/EPS mismatch: The EPS estimate for the company's current year increased from 1.16 to 1.26 over the last 30 days, an increase of 8.62%. This increase came during a time when the stock price changed by 5.91% (from 78.96 to 83.63 over the last 30 days).

3. Acme Packet, Inc. (NASDAQ:APKT): Provides session delivery network solutions that enable the delivery of interactive communications, such as voice, video, and multimedia sessions; and data services across internet protocol network borders. Market cap at $1.23B, most recent closing price at $19.03. Shares shorted have decreased from 8.48M to 6.82M over the last month, a decrease which represents about 2.9% of the company's float of 57.28M shares. Days to cover ratio at 3.45 days.

Clues to recent bullishness: Shares of Acme are currently rallying. 20-day moving average at 11.66%, MA50 at 13.76%. Perhaps this is a case of a short squeeze.

4. Clearwire Corporation (CLWR): Provides wireless broadband services. Market cap at $3.19B, most recent closing price at $2.21. Shares shorted have decreased from 65.07M to 50.87M over the last month, a decrease which represents about 2.89% of the company's float of 490.71M shares. Days to cover ratio at 2.59 days.

Clues to recent bullishness: Perhaps short sellers are following the lead of institutional investors, who have been heavily net purchasing the stock: Net institutional purchases in the current quarter at 45.7M shares, which represents about 9.31% of the company's float of 490.71M shares.

5. ADTRAN Inc. (NASDAQ:ADTN): Designs, manufactures, markets, and services network access solutions that enable voice, data, video, and Internet communications across wireline and wireless networks worldwide. Market cap at $1.14B, most recent closing price at $18.50. Shares shorted have decreased from 12.09M to 10.48M over the last month, a decrease which represents about 2.58% of the company's float of 62.43M shares. Days to cover ratio at 6.14 days.

Clues to recent bullishness: Perhaps short sellers are following the lead of institutional investors, who have been heavily net purchasing the stock: Net institutional purchases in the current quarter at 10.7M shares, which represents about 16.85% of the company's float of 63.49M shares.

Short data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: Short Sellers Think These 5 Tech Stocks Are Ready To Rebound