Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

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.


(Click to enlarge)

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. AOL, Inc. (AOL): Operates as a Web services company that offers a suite of brands and offerings for the worldwide audience. Market cap at $2.58B, most recent closing price at $30.87. Shares shorted have decreased from 7.64M to 5.82M over the last month, a decrease which represents about 2.23% of the company's float of 81.66M shares. Days to cover ratio at 2.87 days.

2. Dolby Laboratories, Inc. (DLB): Develops and delivers products and technologies for the entertainment industry worldwide. Market cap at $3.62B, most recent closing price at $35.37. Shares shorted have decreased from 6.40M to 5.54M over the last month, a decrease which represents about 1.88% of the company's float of 45.65M shares. Days to cover ratio at 6.53 days.

3. Garmin Ltd. (GRMN): Operates as a holding company and through its subsidiaries, designs, develops, manufactures, and markets global positioning system (GPS) enabled products and other navigation, communication, and information products worldwide. Market cap at $8.87B, most recent closing price at $42.62. Shares shorted have decreased from 16.81M to 15.03M over the last month, a decrease which represents about 1.42% of the company's float of 125.06M shares. Days to cover ratio at 10.44 days.

4. EZchip Semiconductor Ltd. (EZCH): Engages in the development and marketing of Ethernet network processors for networking equipment. Market cap at $1.01B, most recent closing price at $36.23. Shares shorted have decreased from 4.54M to 4.19M over the last month, a decrease which represents about 1.28% of the company's float of 27.38M shares. Days to cover ratio at 16.66 days.

5. Allot Communications Ltd. (ALLT): Engages in developing, selling, and marketing Internet protocol service optimization solutions in Europe, the Middle East, Africa, the Americas, Asia, and Oceania. Market cap at $579.69M, most recent closing price at $18.31. Shares shorted have decreased from 1.41M to 1.08M over the last month, a decrease which represents about 1.17% of the company's float of 28.23M shares. Days to cover ratio at 2.32 days.

6. Ancestry.com Inc. (ACOM): Operates as an online resource for family history for subscribers worldwide. Market cap at $1.39B, most recent closing price at $32.03. Shares shorted have decreased from 3.27M to 2.97M over the last month, a decrease which represents about 1.02% of the company's float of 29.55M shares. Days to cover ratio at 2.58 days.

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

Source: Short Sellers Think These 6 Technology Stocks Are Ready To Rebound