Eutelsat Shares Fall 3.3% at Close, Extending Weekly Decline
Eutelsat Communications' stock experienced another session of decline on Monday, December 8, closing at 2.05 euros, down 3.3% from the previous day, with relatively moderate trading volumes representing 0.31% of the exchanged capital. This downturn is part of a deteriorating stock market context for the group, with the CAC 40 almost stable, down by 0.08%.
Continued Downtrend Amidst Market Challenges
The stock thus continues a marked downward trend that has been ongoing for several weeks, exacerbated at the beginning of December by SoftBank's announcement of the sale of 36 million subscription rights, equivalent to about 26 million shares, nearly half of the Japanese group's stake. Over a week, the decline now reaches 5.96%, and extends to 7.02% over three months. The annual performance stands at -15.45%, while the CAC 40 index has increased by 9.18% over the same period, indicating a significant detachment of the stock from the market. This correction occurs in the context of a capital increase of 670 million euros with the maintenance of the preferential subscription right, priced at 1.35 euros per new share, whose subscription period ends on December 9, 2025. Technically, the stock is in a zone of high tension. The Relative Strength Index (RSI) drops to 20 points, a level indicative of extreme overselling suggesting a stock heavily neglected by short-term investors. This situation indicates intense selling movement, often a precursor to a technical respite, but with no guarantee of a lasting turnaround. The 50-day moving average is established at 3.24 euros, 58% above the current price, confirming a well-established downward trend. The stock also trades well below its 200-day moving average (3.53 euros), a sign of persistent structural weakness for several months. The Average True Range (ATR) stands at 0.12 euro, reflecting high volatility in a context of increased uncertainty.
Impact of SoftBank's Subscription Rights Sale
The sale of subscription rights by SoftBank Group Capital, announced on December 3, aimed to raise funds to finance the exercise of its remaining rights in the ongoing capital increase. This operation caused a nearly 8% drop in the stock at its announcement, intensifying the selling pressure on the stock. The total capital increase of about 1.5 billion euros consists of a first tranche of 828 million euros completed in November, and a second tranche maintaining the DPS for 670 million euros, supported by 71% by the French State, Bharti Space Ltd, the British government, CMA CGM Participations, and the Strategic Participation Fund. The dilutive effect of this operation weighs heavily on investor sentiment. The 50-day moving average continues its decline, moving from 3.39 euros at the beginning of November to 3.24 euros currently, confirming the absence of a structural rebound. The Chaikin Money Flow (CMF) shows a negative value of -0.12, indicating net capital outflows and a lack of buying conviction. Additionally, the MACD (Moving Average Convergence Divergence) remains negative at -0.37, with a signal line at -0.30 and a histogram at -0.07, indicating an active bearish dynamic, although the differential between the two lines suggests a possible slowdown in selling pressure.
