Edenred Shares Climb 4% to €22.63, Breaking Past €21.76 Resistance
Edenred shares surged 4% to €22.63 in mid-morning trading, among the top gainers in the SBF 120 index. The stock has overcome its €21.76 resistance level, bringing its three-month gain to 27.4%. This rebound contrasts with a still negative annual performance of 17%.
Edenred Breaks Through €21.76 Resistance and Exceeds Upper Bollinger Band
The stock price is now trading above the upper Bollinger band set at €21.98, which is 141% of the band, indicating a strong overbought condition. The RSI at 66 remains below the 70 threshold, suggesting that the bullish momentum has not yet exhausted the short-term indicators. The stock is distancing itself from its moving averages: it is 6.80% above the MM20 (€21.19) and 16.83% above the MM50 (€19.37). The MM200 at €20.36, already surpassed in April, is now exceeded by 11.15%. The breakthrough of the €21.76 resistance extends the rebound that started in February and was confirmed by the crossing of the MM200 at the end of April, following the publication of the first quarter revenue.
Selling Pressure Decreases and Valuation Below Industrial Sector Average
According to reviewed statements, the cumulative net short positions on the stock amount to 9.59% of the capital, declared by ten funds, including Canada Pension Plan Investment Board (1.81%), Two Sigma Investments (1.39%), and Marshall Wace (1.22%). The total has decreased by 1.5 points over thirty days, after peaking at 11.09%. Today's movement could impact the remaining positions. In terms of valuation, the stock is trading at approximately 10.8 times the expected earnings for the current fiscal year and 9.5 times those of 2027, compared to an average of 17.8 times for the Industrials sector, according to the consensus of fourteen analysts. Earnings per share growth from one fiscal year to the next is expected at 13.6%. The next key date is the publication of the first half of 2026 revenue on July 23.
