Valeo share falls nearly 3%, among the worst performers on the SBF 120
After two rebound sessions on Friday and Monday, Valeo erases part of its gains this Tuesday and ranks among the strongest declines on the SBF 120. The decline occurs in a slightly negative Paris market, amid institutional selling pressure that remains unusually elevated on the stock.
A decline that puts Valeo back below its 20-day moving average
The Valeo share falls 2.95% to €13.97 during the session, compared to a close of €14.39 the previous day. This movement takes the stock below the MA20, which stands at €14.42, with the price now trading 3.16% below this average. Conversely, the equipment supplier remains above its MA50 at €13.73, representing a positive gap of 1.71%, which tempers the bearish short-term outlook.
The RSI at 53 remains in neutral territory, with no signal of exhaustion in either direction. The next identified support level is at €13.04, approximately 6.6% below the current price. On the broader market, the CAC 40 falls 0.51% during the session and the SBF 120 declines 0.50%, placing Valeo's decline well above the general market trend for the day.
Substantial short positions still in place and IAA show in sight
Selling pressure on Valeo remains structurally elevated. According to filed disclosures, eight funds collectively hold 10.23% of capital sold short, down one percentage point over thirty days (versus 11.28% a month ago). Such a level of short positions signals that a significant portion of institutional investors remain positioned against the stock, although the recent trend shows a slight reduction in these bearish bets. This signal should be monitored without being interpreted in isolation, particularly as analysts' views on the value warrant close attention in this context.
On the fundamentals front, Valeo unveiled this Tuesday the guidelines of its offering for commercial vehicles ahead of the IAA Transportation show in Hanover, which runs from September 14 to 20. The equipment supplier will showcase electrification, driving assistance systems, and centralized software architectures. Upon publication of 2025 annual results (February 26, 2026), the company had recorded new orders up 38% at €24.6 billion, testifying to robust commercial momentum. According to the consensus of analysts surveyed, the stock trades around 9 times expected earnings for the current fiscal year, positioning the valuation at a moderate level relative to the outlook presented.
