Eutelsat Communications Shares Tumble Over 4%, Breaking Support at €2.38
The satellite operator continues its slide at the opening, amid a gloomy session for the Paris market. Selling pressure remains strong, despite a steady flow of commercial announcements concerning low-orbit connectivity.
The stock sinks below all its technical levels and dives into the depths of the SBF 120
Eutelsat Communications shares fell 4.27% to €2.33 at the start of the session, among the steepest declines in the SBF 120, as the broader index fell by 0.9%. The stock broke through the support at €2.38 identified in the previous session and is now down 13.66% for the week, extending the bearish trend that began in late May. The stock is now trading 26.44% below its 20-day moving average (€3.17) and 22.52% below its 50-day moving average (€3.01), indicating a clear break from the bullish momentum that had driven the stock from March to May.
The RSI at 36 indicates seller exhaustion in the current sequence, yet it does not switch to an oversold zone. The one-month loss now stands at 38.57%, significantly limiting the gains from the spring rally, which still posts a positive quarterly performance of +10%. This movement occurs in a tense market context: the VIX jumped more than 20% to 20.23, amid renewed tensions around the Strait of Hormuz and more restrictive speeches from major central banks.
Commercial announcements on the OneWeb LEO constellation fail to halt the decline
Yet, the commercial dynamics around low-orbit connectivity remain robust. The expansion of the maritime partnership with AST Networks, unveiled on June 22 and worth several million dollars, extends a series of multi-year agreements signed since spring with Mercury in Angola, Voimatel in Finland, and Tototheo Global for the maritime segment. The Centaur contract concluded on June 15 with the French Ministry of Armed Forces, worth a maximum of €350 million over eight years, completed this set. These announcements have not managed to stop the correction, even though during the 9M 2025/2026 report on May 12, the group highlighted a 50% year-on-year increase in LEO activity revenue, but also a negative currency impact of €42 million and nearly stable operating revenue. The break of support at €2.38 now places the 200-day moving average (€2.68) out of immediate reach, with the stock trading 13% below.
