10 Worst Affordable Tech Stocks to Buy According to Short Sellers

6) Progress Software Corporation (NASDAQ:PRGS)

Short % of Float (As of 30 August 2024): 16.73%

Forward P/E as of 23 September 2024: 11.53x

Progress Software Corporation (NASDAQ:PRGS) offers cloud-based security solutions to large- and mid-sized organizations in a wide range of industries.

Short sellers believe that the company’s performance is expected to be impacted by the challenges related to the IT spending environment. Moreover, this environment is not likely to show changes in the near term. In addition, the short sellers believe that investors are concerned about Progress Software Corporation (NASDAQ:PRGS)’s recent decision to suspend its quarterly dividend as of the closing of the ShareFile acquisition. The short sellers highlighted that Progress Software Corporation (NASDAQ:PRGS) saw a decline of 2% YoY in its revenue and non-GAAP revenue to $175 million, with lower revenue from software licenses.

However, Wall Street analysts believe that Progress Software Corporation (NASDAQ:PRGS) should continue to be aided by its focus on artificial intelligence (AI) integration, strategic M&A, and the healthy performance of its MOVEit product. While AI integration throughout various functions demonstrated efficiency improvements, market experts anticipate strong demand for its essential products. Moreover, the successful integration of MarkLogic acquisition has expanded the company’s AI opportunities.

Coming to the outlook, Progress Software Corporation (NASDAQ:PRGS) continues to seek acquisition opportunities and might increase its pace of deals as a result of market conditions. With a strategic eye on M&A growth, along with an innovative approach to pricing AI products, Progress Software Corporation (NASDAQ:PRGS) appears to be well-placed to capture opportunities in the burgeoning market.

Guggenheim reaffirmed a “Buy” rating on the shares of Progress Software Corporation (NASDAQ:PRGS), setting a price target of $64.00 on 25^th June. As per Insider Monkey’s 2Q 2024 data, 27 hedge funds reported owning stakes in the company.