Eutelsat Shares Decline Again, Nearly 20% Lost in One Month
In early afternoon trading on the Paris exchange, the satellite operator's stock continues to fall, contrary to a well-oriented CAC 40. The stock struggles to break out of the downward spiral that began in late May, as its technical indicators remain weak.
A Decline that Positions the Stock Below its 20-Day Moving Average
Eutelsat Communications shares drop 2.05% to €2.43 during the session, while the SBF 120 index is up 0.39%. The stock has fallen below its 20-day moving average (MM20) of €2.49, a gap of -2.37%, and remains significantly distant from its 50-day moving average (MM50) at €2.94, over 17% away. The RSI at 43 reflects persistent selling pressure without entering an oversold zone. Over a month, the loss reaches nearly 20%, but the stock still holds a gain of 3.7% over three months, a remnant of the rebound that started in spring before the downturn at the end of May. The support level identified at €2.16 remains the lower boundary referenced by recent corrective movements.
A Case Supported by LEO Contracts but Struggling to Convince
The flow of commercial news does not stop the correction. Since mid-June, the operator has announced several deals around its OneWeb constellation: the Centaur contract with the Ministry of Armed Forces, worth up to €350 million over eight years, a multi-year agreement with Angola's Mercury, and the expansion of the maritime partnership with AST Networks at the end of June. When publishing its results for the first nine months of the fiscal year 2025-2026 (on May 12, 2026), the company highlighted a 50% year-over-year increase in revenue from its LEO activities, while noting a negative currency impact of €42 million over the period. The backdrop remains challenging for satellite telecommunications stocks: the macro environment is still dictated by nervousness over long-term rates, following the release on Wednesday of the Fed's minutes which indicated a committee still focused on inflation risks. The next significant event for the stock will be the publication of the fourth quarter revenue, expected later this summer.
