Derichebourg Shares Rise 3.71% at Close, Driven by an Upward Trend
The metal recycling specialist’s stock continues its rally, closing on Friday, November 28 at 6.4250 euros, up 3.71% from the previous day. This increase is part of a medium-term dynamic that is decidedly positive for the group, which significantly outperforms its benchmark index.
Friday's Trading Session Ends with Notable Gains
The trading session on Friday, November 28, ended with a significant increase of 3.71% for Derichebourg shares, which settled at 6.4250 euros compared to 6.20 euros the day before. Trading volumes remained moderate with 0.25% of the capital traded, a level characteristic of the usual liquidity of the stock. This daily performance reinforces a remarkable weekly dynamic of 6.91%, while over a quarter, the stock shows a gain of 8.53%. Over a year, the progress reaches 42.08%, far surpassing the 13.72% of the CAC 40 over the same period. The overall Paris market ended with a moderate rise of 0.29% at 8,122.71 points, confirming that Derichebourg's performance remains disconnected from the index movements, consistent with its negative beta of -0.06.
Technical Analysis Reveals Favorable Configuration
Technical analysis reveals a favorable configuration for the stock, which is now in contact with its major resistance at 6.46 euros. The recent crossing of the 50 and 200-day moving averages, positioned at 5.82 and 5.77 euros respectively, indicates a structural trend reversal. The RSI is at 77, indicating an overbought zone that could lead to short-term profit-taking. However, the MACD displays constructive signals with a line at 0.03 well above the signal at -0.01 and a positive histogram at 0.04, confirming the strength of the bullish momentum. The price is also above the upper Bollinger band set at 6.14 euros, signaling an extension of volatility and a recent acceleration of buying.
Recovery of the Stock Supported by Gradually Improving Operational Context
The recovery of the stock is supported by a gradually improving operational context. The group had published solid half-year results at the end of May with a doubling of the net group share result to 63.2 million euros, supported by a significant contribution from Elior Group. In mid-November, Oddo BHF raised its price target from 5 to 6 euros while maintaining a neutral opinion, highlighting management's confidence in reaching the upper end of the targeted EBITDA range. The group also continues its strategy of share buybacks for cancellation, a operation carried out regularly in recent weeks. The next quarterly results publication expected in early December will be closely watched by investors to confirm the trajectory started in a recycling sector still subject to metal price pressures and weak demand from European steelmakers.
