Renault stock falls 2% in the CAC 40's lower ranks
The diamond manufacturer is losing ground this Wednesday, extending the pressure exerted since the publication of August commercial data. In a context of a moderately downward-oriented market, the stock finds itself among the rare CAC 40 values recording a significant decline, while the Paris index limits its losses.
A 2% decline in an almost stable CAC 40, against a backdrop of disappointing commercial data
Renault falls 2.1% to 28.40 €, placing itself among the largest drops in the CAC 40 within an index that only retreats 0.32% during the session. This relative underperformance comes after August registration statistics revealed a decline in the group's sales on the French market, while the overall market grew by 3.6%. The military escalation in the Middle East (American strikes on Iran, Iranian retaliation toward several bases in the region) weighs on all European markets this Wednesday, notably with the DAX retreating 1.02% during the session, while Brent rises 5.43% to 95.40 $/barrel, a level that mechanically increases automotive usage costs.
On the commercial front, Renault had posted a more promising July (up 4.41% on the French market), but August's turnaround questions the continuity of this momentum in the short term. CIC Market Solutions maintains its buy rating with a price target of 40.00 €, confirmed on September 1st, representing an upside potential of nearly 41% compared to the current price. Based on expected earnings per share, the stock trades at approximately 4.3 times the current year's earnings according to the consensus of surveyed analysts.
The stock in contact with its 20-day moving average with still significant short positions
At 28.40 €, Renault's price is practically at its 20-day moving average (28.52 €, difference of -0.42%), a threshold whose maintenance or breach will guide short-term momentum. The stock remains above its 50-day MA at 27.26 €, with a difference of 4.18%, but remains clearly below its 200-day MA at 30.24 €, which is 6.08% above the current price. The RSI at 57 signals no extreme configuration, reflecting measured selling pressure rather than marked exhaustion. On the downside, five funds cumulatively hold 5.61% of the capital sold short according to filed declarations, down 1.37 points over a month (compared to 6.98% thirty days ago).
This level remains elevated and testifies to persistent caution on the part of some institutional investors, even if the recent trend is toward a reduction in these positions. Over the rolling week, the stock is still showing a gain of 3.69%, a sign that today's decline is part of a consolidation phase following a recent rebound. The support level at 26.03 € constitutes the next reference point in case the movement worsens.
