SES Shares Continue to Fall at Close, Weighed Down by Quarterly Results
The stock of Luxembourgish satellite operator SES continued its correction movement on Tuesday, started in mid-November, dropping 2.88% to 5.055 euros at the close on the Paris Stock Exchange. This session reflects the persistent mistrust of investors following the disappointing publication of the third quarter accounts at the beginning of November, which had caused the share price to plummet by more than 12% in a single session.
Market Context and Recent Performance
The session on November 18 was marked by a 2.88% decline in SES shares, which settled at 5.055 euros at the close, in a Parisian market context also on the decline with the CAC 40 falling by 1.86%. Trading volumes remained modest with only 0.1% of the capital changing hands. This new decline is part of a broader downward trend, with the stock now showing a decline of 4.08% over a week and 15.68% over three months. However, this movement contrasts with an annual performance still positive at 49.29%, significantly higher than the CAC 40's 9.61% over the same period, but mainly reflects a gradual erasing of gains accumulated earlier in the year.
Underlying Causes of Weakness
This persistent weakness originates from the publication of the third-quarter results on November 6, where the Luxembourgish satellite operator suffered a dramatic drop of 12.23% in a single day. The accounts revealed a sharp decline in margins following the integration of Intelsat since July, marking the first publication of combined results for the group. The market penalized the weakness of the adjusted EBITDA and a net loss of 69 million euros, far from the profit of 4 million earned a year earlier. This harsh reaction reflects investors' concerns about the group's ability to effectively digest this strategic acquisition and to quickly extract the expected synergies.
Technical Outlook
Technically, the stock is now moving in a concerning zone with an RSI at 27, indicating a marked oversold situation that could, however, pave the way for a short-term technical rebound. More structurally, the price is trading well below its 50-day moving average set at 6.21 euros, confirming the medium-term bearish trend. The MACD indicator also displays a negative signal with a histogram at -0.13, while the Chaikin Money Flow (CMF) of -0.25 indicates persistent capital outflows. The stock must quickly reclaim the support level of 4.85 euros to avoid a further downward acceleration, while any attempt at a rebound must break through the resistance of 7.06 euros to durably reverse the trend.
