Valneva Shares Fall 5.44% Midday After Previous Day's Surge

Valneva's stock falls 5.44% at midday this Friday, November 28, trading at 4.066 euros after having closed at 4.30 euros the previous day. Trading volumes remain moderate with 0.84% of the capital exchanged. This decline occurs in a positive stock market context, with the CAC 40 up by 0.2% at 8,115.29 points. Over the week, the stock still shows a gain of 7.85%, while the three-month performance is 7.74%. Over one year, the biotech has seen a spectacular rise of 120.3%, significantly outperforming the Paris index, which has only increased by 13.61% over the same period. Today's movement appears to be a natural profit-taking following the sharp increases recorded on Wednesday.

This correction follows two major announcements made on Wednesday, November 26. Valneva first revealed positive final results for immunogenicity and safety from the Phase II study of VLA15, its vaccine candidate against Lyme disease developed in partnership with Pfizer. These data confirmed a strong immune response, with Stifel estimating an 80% probability of success for Phase III before potential commercialization. This announcement, well received by analysts, had propelled the stock up by 5.6% on Wednesday. Subsequently, the company announced the closure of its historic site in Nantes-Saint-Herblain to consolidate all its French activities in Lyon, where the headquarters will be transferred, while R&D will be centralized in Vienna, Austria. The Nantes site, which had about sixty employees, housed operational and preclinical R&D activities. This restructuring aims to enhance the operational efficiency of the group in a sector where cost control is crucial.

From a technical perspective, the stock is in a contrasting configuration. The RSI stands at 79, a high level indicating an overbought situation and suggesting a pause or consolidation in the short term. The MACD indicator, meanwhile, shows signs of recovery, with a positive histogram at 0.06, and the MACD line moving towards its signal line, although both remain in negative territory. The price trades slightly below its 50-day moving average positioned at 4.21 euros, but remains well above the 200-day moving average set at 3.44 euros, confirming an underlying bullish trend. Support and resistance levels are identified at 3.66 euros and 4.35 euros, respectively. It is worth noting that the stock remains under watch with a net short position representing 0.60% of the capital, and recent insider movements showing more disposals than purchases.