Definitive Healthcare had the biggest increase in short selling among software stocks - Baird

Definitive Healthcare Corp. (NASDAQ:DH) saw the largest increase in shares sold short among the vertical software space, according to a Baird Equity Research Morning Report.

After average short interest increased in the vertical software sector about 25%, it is flat year-to-date in 2024.

From Feb. 15-29, Definitive Healthcare (DH) had the largest increase in shares sold short at 53%, followed by PowerSchool Holdings Inc. (PWSC) at up 26%, PTC Inc. (PTC) at up 20%, Q2 Holdings Inc. (QTWO) at up 15%, SPS Commerce Inc. (SPSC) at up 7%, nCino Inc. (NCNO) at up 6%, Instructure Holdings Inc. (INST) at up 5%, and Roper Technologies Inc. (ROP) at up 3%.

Autodesk Inc. (ADSK) saw the lowest number of shares sold short among the sector at -16%, followed by Phreesia Inc. (PHR) at -10%, Bentley Systems Inc. (BSY) at -8%, Veeva Systems Inc. (VEEV) at -6%, Manhattan Associates Inc. (MANH) at -4%, Cadence Design Systems Inc. (CDNS) at -4%, Synopsys Inc. (SNPS) at -3%, Guidewire Software Inc. (GWRE) at -3%, Model N Inc. (MODN) at -2%, ANSYS Inc. (ANSS) at -1%, and Certara Inc. (CERT) at -1%.

When it comes to short interest as percentage of float, Definitive Healthcare (DH) saw the highest short interest at about 16%.

In addition, PowerSchool (PWSC) (14%), Instructure Holdings (INST) (11%), Model N (MODN) (7%), and Bentley Systems (BSY) (7%) were next in line with the second through fourth highest short interest as a percentage of float.

“On average, about 5% of float is sold short across our coverage,” Baird analysts said in the report.