Alten stock drops nearly 4%, among the top three decliners of the SBF 120
The previous day's rebound is already erased for Alten, which is falling sharply again on Tuesday in a Parisian market under overall pressure. The decline occurs in a heavy macroeconomic context, ahead of a highly anticipated decision by the Federal Reserve on interest rates.
A sharp decline that brings Alten back to its 50-day moving average and to the bottom of the SBF 120
Alten falls 3.92% to €68.65 in session, compared with a close of €71.45 the previous day. This sharp decline places the stock among the strongest decliners of the SBF 120. The price is now trading 6.67% below the 20-day moving average at €73.56, which represents a short-term resistance level visible since early September.
On the other hand, it remains just in contact with the 50-day moving average at €68.46, with a minimal gap of only 0.28% above this average. This threshold deserves attention: a sustained break below the 50-day moving average would open the way to the support level at €68.35, located just a few cents below. The RSI at 49 remains neutral and does not provide a clear directional signal, while the MACD displays a negative histogram at -0.90, a sign that short-term bearish momentum is gaining strength after Monday's rebound.
A stock under pressure since late August, valued at around 9 times expected earnings
The session's decline is part of a correction that began in late August. The stock had then begun its decline after surging more than 20% over the previous thirty days, in a mean reversion move. Over one month, Alten is down 7.23%, although the three-month performance remains positive at +12.17%, reflecting the strong summer rebound. The macroeconomic backdrop is weighing on all risky assets: markets are anticipating nearly 90% probability of a 25 basis point rate hike by the Fed on Wednesday, while the yield on the 10-year US Treasury has broken through 5%, its highest level since October 2023.
In this monetary tightening environment, the technology consulting sector remains sensitive to a potential contraction in IT budgets of large enterprises. On the valuation front, according to the consensus of analysts tracked, the stock is trading at around 9 times the earnings of the current fiscal year and 8 times those of the following year, with earnings per share growth expected to be nearly 13% from one fiscal year to the next. The support level at €68.35 remains the area to watch closely at close.
