Alten stock loses further ground and falls to the bottom of the SBF 120
The share of the engineering and technology consulting group continues its correction, in a virtually stable SBF 120 on Monday. Selling pressure intensifies following an already difficult week, which saw the stock decline nearly 8% in seven days.
A marked weekly decline that pushes the price below its 20-day moving average
ALTEN declines 2.07% in session, at €70.95, while the SBF 120 advances 0.05%. The stock thus ranks among the index's laggards, with a rank of 114 out of 120 members. This decline extends a particularly difficult week: the value loses 7.68% over seven days, erasing a significant portion of the strong rebound accumulated over three months (+10.26%). The price is evolving below the 20-day MA, which stands at €75.11, representing a gap of 5.54% above the current price.
This configuration places the short-term moving average as a natural resistance to monitor. Conversely, the 50-day MA (€66.25) and 200-day MA (€64.57) remain well below the price, at gaps of 7.09% and 9.88% respectively, which reflects an underlying trend that remains positive despite the recent decline. The RSI at 57 remains in neutral territory and signals neither overbought nor oversold conditions, without any particular momentum emerging from this perspective.
A stock valued at around 9 times expected earnings, in a macroeconomic context unfavorable to service stocks
According to the consensus of reviewed analysts, Alten stock is trading at approximately 9.3 times expected earnings for the current fiscal year and 8.2 times for the following fiscal year, with earnings per share growth projected at +12.8% year-over-year. These modest multiples for a technology services company reflect the recent correction in the stock, which had nonetheless surged more than 27% in one month last summer before giving back some of these gains. The macroeconomic backdrop weighs on service stocks with strong exposure to corporate investment cycles: markets now factor in a significant probability of another Fed rate hike at the September 15-16 meeting, in a context where US PCE inflation exceeds 3.7% on an annual basis.
This prospect of durable restrictive financial conditions tends to brake outsourcing decisions and technology recruitment among Alten's client companies, reducing demand for consulting services where Alten operates. Last Friday's decline, already notable in a virtually stable SBF 120, illustrates the fragility of the stock in the face of these headwinds. The graphic support identified at €56.75 remains far below current prices, while resistance at €79.80 constitutes the first hurdle to clear to resume the summer momentum.
