Société Générale Shares Drop 1.38% in the Morning of December 31
Société Générale's stock price fell by 1.38% on the morning of Wednesday, December 31, settling at 68.44 euros after closing at 69.40 euros the previous day. The stock had surpassed its resistance threshold of 68.22 euros on Tuesday, rising by 2.12% to close at 69.40 euros, a record high since the 2008 crisis. Trading volume remains muted with only 0.01% of capital traded, typical for year-end sessions. Despite this temporary setback, the annual performance remains exceptional with a 154.7% increase over twelve months, making the bank the top performer on the CAC 40 in 2025. Over three months, the stock still shows a gain of 20.88% and over a week, an increase of 0.32%, confirming the strength of the upward trend. The price is significantly above its moving averages, with the MM50 at 59.51 euros and the MM200 at 52.24 euros, validating a favorable underlying dynamic.
The RSI is at 86, in the overbought zone well beyond the threshold of 70, suggesting a possible technical correction in the short term. This indicator, which measures the speed and magnitude of price movements, suggests that the stock might experience a breather after its rapid rise. However, the MACD remains positively oriented with a line at 2.54 above the signal at 2.27, maintaining bullish momentum despite the RSI warning. The Bollinger Bands, ranging from 58.88 euros to 70.63 euros, frame the current price, which is approaching the upper boundary. This technical configuration urges investors to be cautious, although the company's fundamentals remain strong with a tangible return on equity of 10.7% in the third quarter of 2025, exceeding the annual target of 9%.
As of December 26, 2025, Société Générale has repurchased 1.3% of its capital, thus completing 61.4% of the 1 billion euro share buyback announced in mid-November. This operation, aimed at canceling shares, supports the stock's valuation and reflects the management's confidence in the group's prospects. Deutsche Bank recently raised its price target from 63 to 68 euros with a buy recommendation, offering limited potential after the recent rise. The 2025 annual results will be published on February 6, 2026, a key date to assess the group's ability to maintain its exceptional momentum. The bank benefits from a structural improvement in profitability, driven by revenue growth and cost control, as well as a favorable interest rate environment for interest margins.
