Corticeira Amorim shares sink through their €6.64 support and lose 9%
The shares of the Portuguese cork stopper manufacturer suffer a very heavy session following the publication of its nine-month accounts. The sequence points to a clear technical break, after an already difficult month.
A broken support and a price below its three moving averages
Corticeira Amorim shares fell 9% to €6.37 early in the afternoon, compared with €7 the previous day. During the session, the stock broke through its lowest level of the last 30 sessions, at €6.64, which has become a resistance the price has not recovered.
The stock is thus below its 20-day moving average (MM20) at €6.79 (a gap of 6.2%), below its 50-day moving average (MM50) at €6.92, and below its 200-day moving average (MM200) at €6.70 (a gap of 4.9%).
The RSI at 31 reflects the selling pressure of the session, while the next support is at €6.32, just one point below the price. Over the week, the decline reaches 7.4%, so the drop of the day accentuates an already established trend.
Nine-month accounts down, with a stable EBITDA margin
Corticeira Amorim published its nine-month results on 2 November: revenue fell 4.3% to €647.7 million, and recurring EBITDA fell 3.4% to €113.5 million, bringing the margin to 17.5%.
Net income fell 22.4% to €35.4 million, due to non-recurring costs related to the restructuring of the flooring business and the adjustment of the cost structure.
The group indicates that the contraction in wine consumption appears to be slowing, with no significant recovery expected in the short term. The stock has lost 12.5% over one year and 3.8% over three months. A €25 million share buyback programme, announced on 29 May, was about 7% executed as of 21 September.
