DIGIS has found some footing this week — up 1.6% on Friday to €6.47 — but the month remains firmly in the red, down over 8%, and the lending market that swung so dramatically in early September is now settling into a new, tighter equilibrium that bears watching.
The borrow picture has calmed since the wild moves flagged earlier this week. Availability ran above 6,000% through mid-September — an extraordinarily loose pool. It then compressed sharply to a 52-week low of 342% by September 4, before rebounding to around 1,412% now. That recovery sounds large, but it represents a permanent step-change from the near-zero-demand environment that persisted through August. The borrow cost has eased modestly, down roughly 1% on the week to just under 6%, though that remains well above the sub-5% level seen in late July. Shares on loan remain a small fraction of the float — availability this ample means new short positions face no material friction — but the direction of travel over September has clearly been toward tighter conditions, not looser ones.
The short score captures that directional shift precisely. The ORTEX short score for DIGIS has climbed from 29.6 in mid-September to 33.5 today — a move of nearly four points in under two weeks. That's not an extreme reading in absolute terms, but the rate of change is meaningful. The score touched 39.1 on September 11, dipped back to 29.6 as the borrow pool briefly loosened, and has now resumed its climb. The combined ORTEX score sits at 32.8. The pattern looks less like random noise and more like intermittent short-side interest rebuilding in waves.
Ownership context helps explain why the lending pool behaves so differently here than in most names. Digi Communications N.V. holds 81.6% of shares, with Indumenta Pueri at a further 6%. That leaves a genuinely thin free float — and when even a modest amount of that float moves into the lending pool, availability readings swing dramatically in percentage terms. The four institutional holders on record represent a very concentrated ownership structure, and Thornburg Investment Management's 1.1% stake and Wellington's sub-0.1% position underline just how little is actually circulating.
Valuation multiples offer a mixed read on where the stock sits. The trailing PE sits above 120 — elevated for a telecom — though EV/EBITDA at 8.2x is more reasonable and has been drifting lower over the past month as the share price has slid. The price-to-book multiple at 4.1x has also compressed slightly over 30 days. None of the moves are dramatic, but the direction is consistent: the market has been gradually discounting the stock through September. The next earnings event is scheduled for November 13, which means there is roughly seven weeks for the short score trend and the valuation drift to either resolve or compound.
The setup heading into late September is one of gradual pressure rather than acute stress. Availability remains loose enough that any incremental short-side activity can be accommodated easily, and the borrow cost is stable. What shifts the story is whether the short score continues its climb toward the mid-30s and beyond, or whether it plateaus here — and whether the stock can recover the ground lost in September before the November print.
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