Thales Stock: Shares Fall Below 20-Day Moving Average Amid Caution
Thales shares dropped by 1.75% this Tuesday morning to €247.00, after already losing over 4% in the past seven days. The defense electronics group's stock is now trading below several key technical benchmarks, as the annual results announcement is expected on March 3rd.
Technical Indicators Show Short-Term Selling Pressure
Falling to €247.00, Thales significantly moves away from its 20-day moving average, previously at €255.28, which served as a gravitational zone just last week. This detachment illustrates short-term selling pressure, although the stock still maintains a base above its 50-day moving average at €245.84, which acts as a nearby technical support. The Relative Strength Index (RSI), measuring the momentum of a stock on a scale from 0 to 100, is positioned at 45, indicating a neutral zone slightly tilted towards weakness without signaling an oversold condition. The most relevant support is outlined at €245.20, a level roughly coinciding with the 50 and 200-day moving averages. A clear break below this level could intensify the downward movement, while a rebound on this zone would reinforce the underlying upward trend, with the stock still showing an annual increase of nearly 49%.
Annual Results Announcement Identified as Next Catalyst
Free · Every morning
Technical market signals, before the opening bell.
Bullish and bearish momentum, analyst changes, stocks to watch — automatically computed from Euronext data.
✓ Before 9 AM every morning✓ Euronext data✓ AI-powered analysis
Almost there! Check your inbox.
A confirmation email has been sent. Click the link to confirm your subscription.
An error occurred.
Indicative data. No investment advice. Unsubscribe at any time.
The next identified catalyst for the stock is the annual results announcement, scheduled for March 3, 2026. This event will be crucial in assessing the growth trajectory of the group, which has been supported in recent quarters by the increase in European defense budgets and the demand for cybersecurity solutions. With a beta of 0.04, Thales exhibits an extremely low correlation with general market fluctuations, reflecting a stock profile relatively decoupled from benchmark indices. Over three months, the stock has maintained a gain of 3.18%, indicating some resilience despite the recent pullback. The company's general assembly is set for May 12th. Until then, the quality of the annual figures and the outlook provided by the management could redefine the stock's medium-term market trajectory.
Net income: 2 005 millions d'euros (Résultat Net Ajusté, part du Groupe)
Free cash flow: 2 577 millions d'euros
Net debt: -1 618 millions d'euros
Dividend per share: 3,90 €
Payout ratio: 40 %
Guidance from the release
2025 a été une très bonne année avec des commandes records et une croissance du chiffre d’affaires, démontrant l’excellence opérationnelle du Groupe.
Communiqué indiquant des commandes records, un chiffre d’affaires en hausse et une rentabilité améliorée en 2025, avec des perspectives 2026 positives et un dividende soutenu.
Outlook / guidance
Expected revenue: Entre 23,3 et 23,6 milliards d'euros en 2026
Expected EBITDA: Non précisé publiquement
Expected net income: Non précisé publiquement
Management commentary: Pour 2026, Thales vise un book-to-bill supérieur à 1 et une croissance organique du chiffre d’affaires entre 6 % et 7 %, correspondant à un chiffre d’affaires entre 23,3 et 23,6 milliards d’euros, et une marge d’EBIT Ajusté entre 12,6 % et 12,8 %; le taux de conversion en cash devrait se situer entre 95 % et 100 %.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
