EDENRED Shares Rebound by 2.82% at Friday's Close, Driven by Quarterly Results
After a technical retreat the previous day, the specialist in meal vouchers rebounds at the end of the week. EDENRED shares closed at 25.90 euros, up by 2.82% from Thursday's close. This movement is part of a remarkably positive weekly dynamic, with a performance of +25.73% over seven days. This week's euphoria stems from the announcement of third-quarter results, which exceeded market expectations.
Friday's Slight Progress and Weekly Overview
On this Friday, October 24, the stock slightly progressed, bringing the price to 25.90 euros after a decline of 3.38% the previous day (25.19 euros). The traded volume remained moderate, with 0.37% of the capital in circulation, reflecting cautious activity at the end of the day. Over a broader horizon, the stock's performance remains mixed. Over a week, EDENRED shows a spectacular gain of 25.73%, while the CAC 40 index remains almost stable at 8225.63 points. This outperformance contrasts sharply with the annual balance: the stock is down by 24.73% over twelve months, while the CAC 40 has advanced by 9.71%. Over three months, the decline amounts to 3.25%, reflecting turbulence before the recent recovery. These gaps testify to the volatility of the stock, with a 30-day volatility index established at 19.69%.
Reason Behind the Turnaround
The origin of this turnaround lies in the third-quarter results published on Tuesday, October 21. The group announced an operational revenue of 667 million euros, up 7.1% on a comparable basis, surpassing the analysts' consensus of 653 million euros. The total revenue reached 724 million euros, against 707 million expected. This outperformance is explained by accelerated growth across all geographic segments: +1.7% in Europe, +15% in Latin America, +16.3% in the rest of the world. Edenred confirmed its 2025 targets, aiming for an Ebitda growth higher than 10% on a comparable basis. This announcement triggered a 12.87% increase on the same day. However, on Friday, October 24, the research house Berenberg downgraded its recommendation from 'buy' to 'hold' on the stock, lowering its price target. This downgrade slightly tempered the euphoria of the previous three days.
Technical Analysis Reflects Oscillating Dynamics
The technical analysis reflects an oscillating dynamic. The stock is trading at 25.90 euros, positioned between the support threshold at 19.95 euros and the resistance at 26.07 euros. In terms of moving averages, EDENRED is trading above its 50-day moving average (22.49 euros) and its 20-day moving average, while it remains below its 200-day moving average (27.24 euros). The RSI reaches 71, signaling an overbought zone, suggesting a possible short-term consolidation. The MACD index shows a line at 0.66 against a signal line at 0.02, with a positive histogram of 0.65, indicating an upward momentum. The Bollinger Bands position the stock between 17.89 euros (lower bound) and 24.85 euros (upper bound). The low beta of 0.11 indicates that the stock is moving independently of the benchmark index.
