STELLANTIS NV Stock: Up 2.3% at Close, Crosses 9 Euros Following Announcement of US Investment Plan
Stellantis stock ended the Monday, October 20 session up by 2.3%, at 9.11 euros. The automaker continues its upward trend started several weeks ago, driven by a major strategic announcement regarding its development in the United States. The stock now shows a 6.46% increase over the past seven days.
Closing Performance
At closing, Stellantis stock stood at 9.11 euros, up 2.3% from the previous day when it had finished at 8.91 euros. This performance is part of an overall upward trend in the Paris market, with the CAC 40 gaining 0.39% at 8206.07 points. However, trading volumes remained limited, with only 0.08% of the capital traded during the day, indicating a relative restraint from participants despite the bullish movement. Over a broader period, the stock has shown a notable increase of 15.16% over three months, confirming a recovery that began in the summer. The weekly performance of 6.46% illustrates the recent acceleration of this trend. However, on an annual basis, the stock still shows a decline of 25.17%, against a rise of 7.79% for the CAC 40 over the same period. This annual underperformance reflects the challenges faced by the European automotive sector amid energy transition pressures and international competition.
Significant Announcement Boosts Stock
The stock's rebound comes after a significant announcement from the manufacturer. Stellantis has unveiled a $13 billion investment plan in the United States, the largest in its history in the country. This program plans to increase annual vehicle production by 50% and create over 5000 jobs in four US states (Illinois, Ohio, Michigan, and Indiana). The plan will support the launch of five new vehicles and the production of a new 4-cylinder engine, in addition to 19 redesigned models planned by 2029. Meanwhile, the analysis firm Jefferies has reaffirmed its buy recommendation on the stock, maintaining its price target at 11 euros. This stance from analysts, valuing the stock nearly 21% above its current price, reflects confidence in the group's strategy and its ability to improve profitability.
Technical Perspective
From a technical standpoint, the stock is now trading above its 50-day moving average, positioned at 8.34 euros, signaling a short-term trend reversal. However, the price remains slightly below its 200-day moving average at 9.52 euros, which is a reference level to confirm a fundamental turnaround. The RSI is at 62, in a zone of positive momentum without reaching an overbought level. The stock is approaching its resistance threshold identified at 9.43 euros, a level it needs to surpass to extend its upward movement. On the downside, the support is located at 7.46 euros. The Bollinger Bands, which frame the price between 7.61 and 9.59 euros, indicate controlled volatility. The MACD, with a line at 0.17 slightly above its signal at 0.18, reflects a precarious balance of forces.
