Edenred Shares Drop Over 4%, Profit-Taking After Surge Amid Acquisition Rumors
Following a spectacular surge at the beginning of the week amid acquisition rumors, Edenred's stock undergoes significant profit-taking this Friday morning. The employee payment solutions specialist is giving back some of the ground gained in the last session, in a Parisian market that is otherwise trending upward.
Edenred Stock Plummets at the Tail End of the SBF 120 Following Rally Triggered by Acquisition Rumors
Edenred stock falls by 4.21% to €23.21, at the tail end of the SBF 120 while the broader index is up by 0.28%. This movement comes after the company confirmed yesterday that it had been exploratorily approached by investment funds, without further details on the nature of this interest. The stock is thus digesting the 15% jump recorded the previous day based on these press reports.
Over the week, the performance remains largely positive, at nearly 14.6%, and the three-month gain is close to 28%. The company reaffirmed yesterday its focus on executing its strategic plan Amplify25-28 and indicated it does not wish to comment further on any potential approaches. CIC Market Solutions also initiated coverage with a buy rating yesterday with a target of €34, representing a potential of about 46% compared to the current price; however, the median analyst consensus stands at €30, representing a potential of about 29%.
A Technical Pullback Within Bounds, Despite Still Significant Short Interest in the Stock
Despite today's drop, the stock price remains above the MM20 at €22.08 (a gap of +5.1%) and the MM50 at €21.29 (+9%), confirming the underlying bullish momentum. The RSI, at 68, remains close to the overheating zone; the stock is near the resistance of €24.23. The support at €20.18 remains the next reference zone in case the pullback extends.
According to reviewed statements, nine funds maintain a cumulative short position of 8.88% of the capital, a decrease of 0.79 points over thirty days. This level, which remains high compared to the SBF 120 average, reflects the enduring presence of investors positioned against the stock or seeking to hedge exposure to the file. The easing observed over a month suggests, however, that some of the bearish bets have unwound in the wake of the recent rally, though not completely disappearing.
