Edenred Shares Adjust by 3.38% at Close, Yet Hold a Weekly Gain of 25.32%
After three sessions of sustained progress, Edenred shares fell back on Thursday, October 23, closing down 3.38% at €25.19. This decline occurred amid increased volatility following the announcement of better-than-expected quarterly results. Nevertheless, the stock remains significantly higher for the week, driven by the company's operational performance in the third quarter.
Session Overview
During the session, the stock opened at €25.89 and moved into the red, losing €0.88 compared to the previous day's close of €26.07. Trading volume stood at 335,235 shares, reflecting a moderate capital turnover of 0.61% given the recent volatility. Over the week, the stock has accumulated a spectacular gain of 25.32%, rising from €20.08 at the close on October 17 to €25.19 on Thursday evening. This remarkable five-day performance contrasts sharply with broader trends: over three months, Edenred has declined by 4.62%, and over one year, the stock is down by 25.82%. The CAC 40 index closed slightly up on Thursday by 0.23% at 8,225.78 points. Since the start of the calendar year 2025, Edenred has gained 21.65% (as of early October data), but remains behind its levels from the past three years. The decline observed this Thursday appears as a natural profit-taking after the rebound in the previous two sessions.
Quarterly Results Impact
The stock's rebound can be attributed to the announcement of T3 quarterly results published on Tuesday, October 21. Edenred reported an operational revenue of €667 million, up 8.2% on a like-for-like basis, thus exceeding the analysts' consensus of €653 million. This strong performance reflects growth acceleration across all business lines compared to the first two quarters. In Europe, the group posted an organic growth of 4.7%, while Latin America advanced by 12.1% and the rest of the world by 16.3%. Edenred also confirmed its annual targets, reassuring market operators about its outlook. The stock jumped by 12.87% at the opening of the session on October 21, and by 19.64% at the close. The following day, Wednesday, October 22, the stock appreciated an additional 4.61%, bringing its price to €26.07. Concurrently, Oddo BHF released a note adjusting its target downwards while maintaining a positive outlook on the stock. These significant movements reflect the volatility of the stock during this earnings release period, with a natural profit-taking occurring after three days of continuous progression.
Technical Analysis
Technically, the stock shows mixed signals. The Relative Strength Index (RSI) stands at 81, a high level suggesting intense buying momentum over the recent sessions. The stock is now close to its short-term resistance set at €26.07, Wednesday's closing level. The 50-day moving average is at €22.50, while the 200-day moving average remains well above at €27.27, illustrating the ongoing bearish pressure over several months. The gap between the current price and the 200-day moving average is -€4.08, reflecting a significant distance. An intermediate technical support is identified at €19.95. The monthly volatility of the stock reaches 19.39%, indicating wide movements. The stochastic shows a sell signal, in line with the correction observed at the end of the day.
