Eutelsat Shares Drop Nearly 7%, Among the Largest Declines in the SBF 120
The downturn extends a profit-taking phase that began after a rally of more than 57% over three months, despite the confirmation of targets during the 9M earnings release on May 12. Could the upcoming IPO of SpaceX be influencing this? Nevertheless, the satellite operator remains well above its moving averages.
Mid-Session Performance
Eutelsat Communications is down by 6.69% at €3.545 mid-session, compared to €3.799 at the previous close. The stock is among the sharpest declines in the SBF 120, while the broader index is up by 0.52% and the CAC 40 has gained 0.67%.
The movement extends the decline that started at the end of May. Over the week, the stock has lost 11.18%, following a drop of nearly 14% last Friday. This sequence appears to be a structured profit-taking, even though the stock had still posted a gain of over 57% over three months and 30% over the past month alone.
The momentum continues to be driven by a shift towards low-orbit satellite connectivity. During the revenue announcement for the first nine months of the fiscal year 2025-2026 on May 12, the group confirmed its annual targets, supported by a 50% year-over-year increase in LEO activity revenue. The group also noted a negative currency impact of 42 million euros for the period.
Stock Remains Well Above Moving Averages Despite Correction
Despite the drop, the stock price remains 5.19% above its 20-day moving average (€3.37) and 26.61% above the 50-day moving average (€2.80). The gap to the 200-day moving average (€2.70) is 31.3%, reflecting the magnitude of the rally since the start of the year. The RSI at 61 remains in the neutral zone despite today's decline, indicating that the configuration has not yet fallen into seller territory.
The stock now fluctuates between the support at €2.57 and the resistance at €4.51. The €3.02 area, a major resistance level broken on May 21, becomes a technical reference monitored in case the consolidation movement continues.
The sectoral context remains mixed. SES is also down by 4.66% in the session, indicating a broader retreat among European satellite operators. The next financial milestone for Eutelsat is the publication of the annual revenue for 2025-2026, expected at the end of July according to the group's usual schedule.
