Wendel's Stock Breaks Its Support at €81.80 and Drops Below Its 3 Moving Averages
The investment holding company significantly declines during the session and is among the largest drops in the SBF 120. The stock falls below its three reference moving averages in an overall sluggish Parisian market.
A Decline That Sends the Stock Among the Biggest Drops in the SBF 120
Wendel's stock fell 2.46% to €79.30 on Friday midday, going against a stable CAC 40 and an almost unchanged SBF 120. The stock is among the largest declines in the broader index, joining the likes of Soitec, Ipsen, and Ubisoft at the bottom. This drop brings the weekly decline to nearly 4% and erases all gains from a rebound that began in mid-June following the geopolitical calm in the Middle East. Over one year, the performance stands at -12.3%, reflecting the persistent discount of the holding compared to its revalued net assets.
The macro context is not favorable for financial stocks exposed to private equity. The Fed's minutes published on July 8 revealed a committee divided over another rate hike, with inflation projections raised for 2026-2027. An environment of persistently high rates mechanically weighs on the valuations of private equity assets, which is the core business of the group managing nearly €50 billion on behalf of third parties through Wendel Investment Managers.
The Stock Breaks Its Support at €81.80 and Drops Below Its Three Moving Averages
The downward breach of the support threshold identified at €81.80 is the technical highlight of the session. The price at €79.30 is now settled below its three moving averages, with a gap of -6.2% compared to the MM20 (€84.57), -7.6% compared to the MM50 (€85.84), and -3.7% compared to the MM200 (€82.35). The RSI at 37 indicates recent selling pressure without reaching the oversold zone, while the MACD remains downward oriented with a line at -1.07 below its signal.
On the agenda, the holding had launched a capital increase reserved for employees in mid-June at €59.90, with a 30% discount on the reference price. The appointment of Cyril Marie to the Executive Board to oversee asset management, effective since July 1, illustrates the group's strategic pivot towards third-party account management. The next technical reference to watch is the resistance at €90.25, now more than 13% away from the current price.
