PERNOD RICARD Stock: Drops 3.3% at Close, Facing Critical Levels
Pernod Ricard lost ground at the close on Thursday, marking a significant decline that amplifies the downturn of recent weeks. While the CAC 40 fell by 1.36% on the day, the spirits group recorded a much sharper decline, reflecting a persistent bearish trend since the announcement of unconvincing results in the first quarter.
Daily Trading Performance
The stock fell by €2.80 to €82.08, registering a negative change of 3.3% compared to Wednesday's close of €84.88. Capital turnover remains sluggish, with only 0.3% of the float traded during the day, indicating a lack of investor interest in the stock. This daily performance is part of a broader downward trend: over seven days, the stock has fallen by 4.27%, and over three months, the decline has reached 9.7%. The annual comparison is particularly critical, with a drop of 27.81% over twelve months. Meanwhile, the leading French index has advanced by 7.53% over the same period, widening the gap between the overall market performance and that of the Dijon-based group.
Fundamental Context
The fundamental context remains burdened by the results of the first quarter of the fiscal year 2025-2026, revealed on October 16. Pernod Ricard recorded a decline of 14.3% in its revenue, particularly affected by poor performances in the United States and China, two strategic markets. The two main analysts covering the stock, JP Morgan and UBS, have maintained their neutral recommendations since then, judging the results disappointing in the American continent and Europe. However, at the end of October, the group successfully completed a bond issue of 1.2 billion euros, a refinancing operation that was successfully carried out with institutional investors.
Technical Analysis
From a technical standpoint, the stock is well below its key levels. The price is at €82.08, below its 50-day moving average set at €88.41 and distanced from its 200-day average at €93.40. The Relative Strength Index (RSI) is at 43, positioning the stock in a neutral zone without a marked bullish signal. The MACD indicator displays a line at -0.46 and a signal line at -0.15, confirming a bearish momentum. Pernod Ricard is approaching the technical support threshold set at €82.10, while the major resistance level remains at €90.26. The Bollinger Bands are established between €81.31 and €90.89. The stochastic displays a buying signal contrary to the current dynamic, reflecting an extreme market positioning on the stock.
