Pernod Ricard Shares Fall 3.59% at Close, Below 80 Euros
On Tuesday, November 18, the spirits producer recorded another session in the red, plunging below the symbolic threshold of 80 euros. The stock, already battered over several weeks, is now trading close to its annual lows in a challenging stock market environment.
Significant Drop in Stock Value
Pernod Ricard's stock settled at 78.44 euros at the close on Tuesday, November 18, 2025, down 3.59% from the previous day, which saw the stock finish at 81.36 euros. Trading remained sluggish with only 0.31% of the capital exchanged during the session, indicating marked investor caution. This new decline is part of a persistent downward trend: over the past seven days, the decline reached 6.15%, while the quarterly correction amounts to 20.2%. Over twelve months, the degradation peaks at 28.07%, while the CAC 40 has gained 9.61% over the same period. The Paris index itself ended sharply down by 1.86% at 7,967.93 points, adding to the selling pressure on luxury and discretionary consumer goods stocks. The fundamental context remains heavy since the publication of the first quarter results of the 2025-2026 fiscal year in mid-October. The group then recorded a 14.3% decline in revenue, affected by disappointing performances in the United States and China, two of its strategic markets. These difficulties persist, fueled by stock adjustments among distributors and a slowdown in the consumption of premium spirits in these geographic areas. However, the management has reaffirmed their medium-term objectives for the 2027 to 2029 fiscal years, aiming for an average annual organic sales growth between 3% and 6%.
Market Trends and Internal Confidence
The stock is primarily following the general downward trend of the Paris market and continuing its negative momentum that started several weeks ago. Internal data, however, reveal notable activity by the management, with 10 purchase transactions representing 37,038 shares (approximately 1.93 million euros) and a single sale of 695 shares (58,463 euros), demonstrating a form of confidence displayed by the internal shareholders. Additionally, three net short positions remain active, representing about 0.81% of the group's capital. The stock is approaching the next dividend detachment scheduled for November 26, 2025, with a payment of 2.35 euros per share, representing an estimated yield of 5.75% at the current rate. Financially, Pernod Ricard successfully placed a bond issue of 1.2 billion euros in two tranches (7 and 11 years) at the end of October, a refinancing operation well received by institutional investors. This transaction demonstrates the group's balance sheet strength, despite a deteriorated operational environment. The management also specified that 2026 would be a transition year, with gradual improvement expected in the second half, but no immediate return to growth.
Technical Perspective on Stock Condition
From a technical standpoint, the stock's situation appears significantly degraded. The RSI at 28 confirms a marked oversold zone, a level rarely reached suggesting short-term excessive pessimism, but does not guarantee an imminent rebound in a downward-oriented market. The price is now significantly below its moving averages: 23.44 euros below the MM50 (86.01 euros) and 14.05 euros below the MM200 (92.49 euros), indicating a structurally solid bearish trend. The immediate support threshold is at 81.36 euros, a level already breached downwards, while the technical resistance is established at 90.26 euros, now distant. The one-month volatility remains high at 5.54, reflecting the instability of the stock in a nervous market context. The MACD, with a negative histogram at -0.44, confirms the absence of a bullish reversal signal in the short term. Investors will closely monitor the stock's behavior around the psychological threshold of 78 euros, close to the annual low, and the market's reaction during the dividend detachment next week.
