Ubisoft Shares Soar Nearly 4% at Thursday's Close
Ubisoft Entertainment's stock continues its positive momentum this Thursday, November 27, with a gain of 3.98% at 6.9040 euros, marking a third session of gains since trading resumed last Friday. This increase occurs in a context of moderate volumes, with 0.62% of the capital traded, while the CAC 40 nearly remains stable at 8,099.47 points.
Current Session Performance
The French video game publisher's stock closed at 6.9040 euros after gaining nearly 4% in the session, rebounding from the previous day's price of 6.64 euros. Over the week, the stock has now increased by 1.98%, indicating a slight resurgence of investor interest. However, this momentum remains fragile given the quarterly and annual performances: the stock has declined by 25.39% over three months and has fallen by 44.55% since the beginning of the year, while the Paris index has gained 12.58% over twelve months. The RSI indicator at 56 suggests a neutral position, with neither overheating nor overselling, while the MACD shows a positive histogram at 0.11, signaling the start of a bullish divergence. Nevertheless, the stock still trades well below its reference moving averages: the MM50 at 8.17 euros and the MM200 at 9.63 euros confirm a bearish underlying trend, with the current price remaining 15% below the first and 28% below the second. The resistance threshold is at 8.59 euros, while the support is established at 6.08 euros, close to the annual lows.
Recent Developments and Market Sentiment
The week was marked by the resumption of trading on Friday, November 21, and the publication of half-year results that exceeded expectations, with net bookings in the second quarter of 490.80 million euros, up 39% and above the target of 450 million. Simultaneously, the publisher confirmed the completion of Tencent's strategic investment of 1.16 billion euros in cash in Vantage Studios, built around the Assassin's Creed, Far Cry, and Rainbow Six franchises. After two consecutive sessions of strong gains since Friday, the stock experienced some profit-taking on Tuesday, November 25. The On-Balance Volume (OBV) indicator at -3,207,982 and the negative Chaikin Money Flow at -0.38, however, indicate persistent selling pressure and capital outflows, tempering short-term optimism. Recent transactions by executives, however, show a positive signal: a significant purchase involving more than 2 million shares for approximately 117 million euros, while seven net short positions representing 1.12% of the capital indicate continued skepticism by some market players.
Operational Outlook
Operationally, Ubisoft has alleviated concerns arising from the trading suspension on November 13, explained by an accounting reprocessing related to IFRS 15 standard. The cost reduction program aiming for 100 million euros in savings is progressing, with the workforce reduced to 17,097 employees by the end of September, a decrease of 1,500 positions over twelve months. The group confirms its targets for the 2025-26 fiscal year: stable net bookings, non-IFRS operating result close to break-even, and negative free cash flow. Despite this technical rebound, the chart structure remains degraded with a high one-month volatility of 17.08 and a beta of 0.09, reflecting a decoupling from the market. The Bollinger Bands place the price in an intermediate zone between 5.98 euros and 7.64 euros, leaving limited room for maneuver before reaching resistance. The consolidation observed this week will require confirmation by more sustained volumes to validate a potential trend reversal.
