SES Shares Bounce 3.86% Mid-Day After Two Tough Weeks
Luxembourg satellite operator SES gains 3.86% this Wednesday, November 19, at mid-day, reaching 5.25 euros on the Paris Stock Exchange. The stock benefits from a slight technical rebound after a particularly challenging period following the publication of its third-quarter results at the beginning of November. However, trading volumes remain moderate with only 0.15% of the capital traded, in a balanced Parisian market, with the CAC 40 down by 0.18% at 7,953.77 points.
Recent Performance and Annual Overview
The SES stock continues to suffer from a lack of confidence that began in mid-November after disappointing results were published, which led to a drop of more than 12% in one session on November 6. However, over the week, the stock has shown a 4.9% increase, benefiting from a rebound after testing its psychological floor near 5 euros. Over three months, the correction remains significant with a decline of 12.79%. On an annual scale, the outlook is more encouraging: the stock has gained 58.8%, significantly outperforming the CAC 40, which has only increased by 9.28% over the same period. This strong annual performance reflects investor enthusiasm prior to the integration of Intelsat, completed last July, but it now appears tarnished by concerns related to the digestion of this strategic acquisition.
Third Quarter Results and Business Outlook
The third-quarter results, published on November 6, revealed a sharp decline in margins following the integration of Intelsat, with a net loss of 69 million euros compared to a profit of 4 million euros a year earlier. Nevertheless, the operator has signed 1.4 billion euros in new contracts since the beginning of the year, bringing the combined order book to 7.1 billion euros. The revenue for the first nine months reached 1,747 million euros, up 19.8% thanks to the consolidation of Intelsat, and adjusted EBITDA increased by 11% to 849 million euros. Despite these elements, the market remains concerned about the group's ability to quickly extract the announced synergies and improve its operational profitability in a context marked by delays in some U.S. government contracts.
Technical Perspective and Market Indicators
From a technical standpoint, the RSI of the stock is set at 18, a level indicating strong overselling which could suggest a potential short-term rebound. However, the price is still significantly below its 50-day moving average at 6.19 euros, and below its 200-day moving average at 5.57 euros, indicating a persistently weak underlying trend. The immediate support is at 4.85 euros, while a more significant resistance awaits the stock at 7.06 euros. The MACD shows a sell signal with a negative histogram at -0.10, confirming the persistent downward pressure on the stock. While the session's rebound offers some relief to investors, technical indicators suggest that caution remains advisable until the stock has sustainably regained its 50-day moving average.
