Teleperformance Shares Drop Nearly 3% and Threaten Support at €55.14

A Marked Decline Bringing the Stock Below Its Three Moving Averages

Teleperformance shares drop 2.59% to €55.68 during the session, against an SBF 120 that gains 0.68%. The stock is among the largest declines in the broader index, extending the drop observed on June 5th. Over a week, the stock loses 8% and over a month more than 12%, thus erasing a significant part of the rebound initiated in the spring.

The price is trading below its three moving averages: 15.08% below the MM20 (€65.57), 6.84% below the MM50 (€59.77), and 5.90% below the MM200 (€59.17). The RSI at 40 indicates the selling pressure of recent sessions without reaching the oversold zone, while the stock approaches the support identified at €55.14, the holding of which conditions the continuation of the movement.

High Short Positions Maintaining Pressure on the Stock

The bearish bet remains massive on the stock: according to reviewed statements, nine funds accumulate 10.85% of the capital sold short, a level that places Teleperformance among the most shorted stocks on the Parisian market. However, the pressure marginally eases, with the total declining by 1.05 points over thirty days, after having reached 11.90% a month ago. This slight pullback may indicate profit-taking by sellers, without necessarily reflecting a reversal of sentiment.

In terms of valuation, the stock is trading at about 4.2 times the earnings expected for the current fiscal year according to the consensus of surveyed analysts, a low multiple that reflects ongoing concerns about the impact of generative artificial intelligence on the group's contact center model. The stock has lost 41.35% over the year, and the maintenance of the support at €55.14 is the next technical marker to watch.