Renault: The Stock Attempts a Rebound of +1.87%
The diamond-shaped logo manufacturer regains some color mid-day, after several sessions of decline. The stock benefits from a well-oriented CAC 40, yet it does not make up for the loss over the week. Declared bearish positions on the capital have strengthened over a month.
A Technical Rebound That Does Not Offset the Weekly Decline of the Stock
Renault's stock gains 1.87% to €27.77 during the session, within a CAC 40 that is up by 0.99% at 8,230 points. The stock ranks 14th in the Parisian index, not among the top gainers. This rebound comes after a series of negative sessions, resulting in a weekly decline of 7.12% and 6.72% over the month. Over a year, the loss reaches 37.33%.
The technical setup remains degraded. The price moves below the MM20 (€28.50, a gap of -2.56%) and even more so below the MM200 (€32.54, a gap of -14.66%). The RSI at 39 indicates seller exhaustion without signaling a clear turnaround. The stock remains close to its support at €27.26, a level tested during the recent declines. CIC Market Solutions reiterated on June 3rd their buy recommendation with an unchanged price target of €40.
A Growing Bearish Bet and a Bond Issue Completed Early in the Week
According to recorded statements, four funds cumulate a net short position of 4.39% of the capital, an increase of 0.93 points over thirty days (compared to 3.46% a month ago). This month-over-month increase reflects institutional players maintaining a selling position on the stock, without however indicating a panic movement: the cumulative level should be interpreted over time rather than in isolation.
On the financing side, the group announced on Tuesday the placement of €750 million in bonds maturing in 2031, with a coupon of 4.125%. The operation illustrates the manufacturer's access to debt markets as part of the futuREady plan. Industrially, French registrations for Renault Group in May fell by 9.8% year-over-year, in a market that overall rose by 1%. According to the consensus of surveyed analysts, the stock is trading at about 4 times the earnings expected for the current fiscal year. The support at €27.26 remains the technical level to watch in the coming sessions.
