SES Shares Continue to Decline at Midday on November 24
SES shares fell by 4.24% at midday on Monday, November 24, trading at 5.415 euros on the Parisian market. The stock of the Luxembourg-based satellite operator remains under pressure following the early November release of disappointing quarterly results, which had triggered a session drop of over 12%. In an almost stable Parisian market, with the CAC 40 slightly down by 0.14%, the satellite transmission specialist struggles to regain investor favor.
Current Session Overview
Since the opening, the stock has lost 4.24% to settle at 5.415 euros by midday, with modest trading volumes representing 0.02% of the capital. This new contraction follows the drop on November 6, when the stock plunged by 12.23% to 5.635 euros after the third-quarter earnings were announced. Over the week, the stock has shown a technical rebound of 7.02%, but this movement only partially offsets the sharp correction experienced at the results announcement. In the longer term, the situation remains mixed: while the stock maintains an impressive annual performance of 60.49%, significantly outperforming the CAC 40's 9.88%, it has undergone a correction of 9.68% over three months, reflecting growing investor mistrust. The price is now significantly below its 50-day moving average at 6.16 euros, indicating persistent selling pressure.
Impact of Third Quarter Results
The third-quarter results published on November 6 marked a turning point for the satellite operator, which recorded a net loss attributable to the group of 69 million euros, compared to a profit of 4 million euros a year earlier. This deterioration is mainly due to the integration of Intelsat, which has weighed on the group's margins specializing in the sale of transmission capacities to clients like Sky. Additionally, the group signed a new launch contract with Relativity Space and won an 89.6 million dollar contract with the US Army for its satellite communication services, offering some positive prospects in a tense context.
Technical Analysis
From a technical standpoint, the stock is in a zone of uncertainty. The Relative Strength Index (RSI) stands at 33, signaling an oversold situation that might attract short-term buyers, yet it does not constitute a clear buy signal. The MACD indicator shows a slightly bullish configuration with a positive histogram at 0.02, suggesting a potential slowdown in the downward trend, but the divergence remains minimal. The price is significantly below its 50-day moving average (6.16 euros), confirming the selling pressure, while the 200-day moving average at 5.59 euros provides a nearby technical support. The Bollinger Bands, very wide (4.26-7.35 euros), reflect a high volatility of 24.15 over a month, characteristic of a stock under high tension. The next major support is at 4.85 euros, while a key resistance is seen at 7.06 euros, a level reached at the end of October before the results were published.
