SES Stock: Significant Weekly Correction in a Pressured Market
SES stock experienced a particularly turbulent week in the markets, posting one of the steepest declines among large caps. In an environment still marked by the retreat of European indices, the drop in the stock was much more pronounced than that of the CAC 40 and the SBF 120. The price movement comes as the latest financial results of the group have just been released.
A Challenging Week for SES on Euronext Paris
The week proved very difficult for SES on Euronext Paris. At close, the stock settled at 5.14 euros, down 24.8% over five sessions. This drop occurred in a deteriorated stock market context, yet it was significantly greater than that of the CAC 40 (-2.54%) and the SBF 120 (-2.6%) over the same period. Trading volumes indicate increased capital turnover, reflecting the prevailing nervousness. Over twelve months, however, SES's performance remains positive, with an increase of 46.77%. Since the beginning of the year, the stock had even increased by more than 70%, driven by the theme of European technological sovereignty and a record order book – before this brutal correction. This market movement was primarily concentrated on Thursday, with the publication of financial results triggering a wave of profit-taking and rebalancing.
Results Dominated by Nine-Month Performance
The context was dominated by the publication of the group's nine-month results. Although SES reported sustained growth in revenue (+19.8%, 1.75 billion euros) and adjusted EBITDA (+11%, at 849 million euros), the contraction in margins weighed heavily on the course of the stock. The adjusted EBITDA margin was established at 49%, compared to 53% a year earlier, a direct consequence of the integration of Intelsat in July. This more pronounced deterioration in margins than expected was penalized by the market, which anticipated a stronger resistance from the group to this structural challenge. Furthermore, SES confirmed its targets for 2025, projecting revenue between 2.6 and 2.7 billion euros and an EBITDA of 1.17 to 1.21 billion euros. Despite this confident outlook and a solid order book of 7.1 billion euros, the profit-taking erased a significant portion of the gains accumulated since the beginning of the year.
Technical Perspective on the Stock
From a technical standpoint, the stock closes exactly on its main support threshold, at 5.14 euros, after having touched a weekly low of 5.27 euros and a high of 6.82 euros. Indicators show marked tension: the RSI plunges to 28, indicating a return to historically low zones, in line with market indicators. The 50-day moving average, located at 6.30 euros, remains above the current price, as does the 200-day average at 5.51 euros, signaling an exit from the bullish channel observed in recent months. The Bollinger Bands stretch between 5.56 euros (lower) and 7.33 euros (upper), revealing increased volatility, amplified by a very low beta (0.07) which indicates independent behavior from major indices. The price momentum remains downward, as suggested by the negative MACD and positioning below all major moving averages.
