TMT Online ObServer "Stock Movers: Short interest in TOTVS surges; TIGO ..."

Research evidence excerpt

TMT Online ObServer "Stock Movers: Short interest in TOTVS surges; TIGO ..."

Global Research

25 May 2026ab

TMT Online ObServer Equities

Emerging MarketsStock Movers: Short interest in TOTVS surges;

TIGO 8% rally; Megacable potential price Telecommunications

increases vs. Telmex frozen pricing Leonardo Olmos,AnalystCFA

leonardo.olmos@ubs.com

+55-11-9658 7533

Stock Movers: Short interest in TOTVS surges; TIGO 8% rally Gustavo Farias

Associate Analyst

TOTVS: Short interest at 9.7% (last 3y high). Last week, TOTVS short interest gustavo.farias@ubs.com

rose to 9.7% from 8.7%, the highest level in the last 3 years, even with the +55-11-2767 6154

stock down ~13% since May-7 (after the 1Q26 release). We believe the increase

may be linked to the decline of foreign investors in the shareholders base

(typically less active in lending the stock). While AI disruption concerns persist

across software, we note less pressure on software names during this month,

with IGV (iShares Expanded Tech-Software Sector ETF) up 10% MTD. Going

forward, while AI could be structurally accretive in the long term, we a risk in

incumbents' ability to adapt fast enough from seat-based to consumption or

task-based billing models.

TIGO 8% rally. Last week, TIGO rose 8%, likely driven by investors

incorporating strong 1Q26 results and Colombia synergies. However, 2026E

earnings fell ~7% as consensus also incorporate integration costs. Overall, we

believe much of the M&A-driven FCF upside is priced in after the ~50% YTD

rally; execution remains a key risk. (See: M&A benefits priced in, amid

relevant short term execution risk; Post-Q1 update and Downgrade to Neutral)

Figure 1: TOTVS short interest (L3Y) Figure 2: Shareholder composition (as a % of free float)

)

as a % o f fr ee f loat

(

e