Eutelsat Shares Drop 2% After a Rally of Over 50% in Three Months
Eutelsat Communications continues its correction in early afternoon trading, following a spectacular rally that began in the spring. The stock is digesting its recent excesses in a poorly oriented Parisian market, yet it remains significantly profitable for the quarter.
Eutelsat Communications Faces Market Correction
Eutelsat Communications shares are down 1.57% at €3.44, while the SBF 120 index has fallen 0.35% during the session. The stock extends the decline that started last week, after a nearly 14% drop on May 29 and a nearly 7% fall the previous day. The movement occurs even though the operator is still up 50.22% over three months and 26.52% over one month, highlighting the technical nature of the ongoing profit-taking. The weekly decline now stands at 18.27%, without challenging the underlying momentum. Despite today's drop, the price still trades above its 50-day moving average (MM50) of €2.83, with a gap of about 21.5%, and its 200-day moving average (MM200) of €2.70, which is approximately 27.4% away. The RSI at 53 indicates a return to a neutral zone, after several weeks of bullish tension. The support identified at €2.57 remains well away from the current price, leaving room before a return to the long-term moving averages.
LEO Continues to Drive Strategy, Awaiting Next Financial Milestone
The strategic backdrop continues to be driven by satellite connectivity in low Earth orbit. During the release of the 9M 2025-2026 figures on May 12, the group confirmed its targets and highlighted a 50% year-on-year increase in LEO business revenue, the main growth driver amid the persistent contraction of the Video segment. On this occasion, the group also noted a negative currency impact of 42 million euros for the period, and nearly stable operational business revenues. Commercially, at the end of May, the operator signed a multi-year agreement with Anuvu for the capacities of the Eutelsat 10B satellite for in-flight connectivity, which extends the strategy of diversifying the customer base. The rapid rise in the stock price in recent weeks, fueled by this strategic reorientation, logically gives way to adjustments. The next technical milestone is the breach of the resistance at €4.51, while the 20-day moving average (MM20) at €3.39, close to today's price, plays the role of a nearby pivot.
