Among the heaviest declines of the CAC 40, STMicroelectronics shares fall nearly 3%
The semiconductor manufacturer is retreating mid-morning and joins the lower end of the Paris index ranking, in a mixed European market. This pullback occurs after a sharp rebound over several weeks, which leaves the stock well above its moving averages.
A decline of 2.85% that contrasts with the weekly gain of 8%
The STMicroelectronics share drops 2.85% to €50.52, compared to €52 at the previous close, and ranks among the steepest declines of the CAC 40 while the index falls 0.37%. The stock nonetheless maintains a gain of 8.11% over the week and 13.49% over the month, a rebound within the upper part of the index, although it remains down 19.74% over three months. Peers in the sector are not all in the same boat: ASML is down 0.89% and ASM International 3.29%, while Nvidia is nearly flat.
The previous day, the market had already faltered at the €52 threshold, a resistance level identified in the stock's data. The price moved away from it this morning, without questioning the gap of more than 11% that separates it from its MA20 at €45.54.
An RSI at 73 and a valuation of 42 times expected earnings
The RSI at 73 signals an overbought configuration following the recent recovery, which explains today's profit-taking: the stock remains 20.96% above its MA200 at €42.04, and the last identified support is significantly lower, at €41.74. From a valuation perspective, according to the consensus of surveyed analysts, the stock is trading at approximately 42.2 times the earnings for the current fiscal year and 22.1 times those for the following fiscal year. For details on market opinions, one can consult analyst opinion on the stock. The €52 level remains the reference to monitor in the coming sessions.
