Icade share price plummets to historic low and drags down SBF 120
Real estate company Icade hit an absolute floor on Monday, with its share price reaching a level never seen since its stock market listing. The security ranks among the steepest declines of the SBF 120 in a session that was otherwise nearly stable for the broad index.
A new absolute low following the breach of support at €17.72
During the session, Icade touched €17.47, thus beating its previous downside record of €17.49. The share loses 2.62% to €17.49 at midday, while the SBF 120 displays a marginal gain of 0.09% during the session. The support level at €17.72 was breached downward and the share price remains below it, extending the deterioration that began in recent weeks: the real estate company has lost 5.41% over seven days and 8.76% over one month.
Over three months, the decline reaches 14.93%, with the rebound in the previous session (Friday, September 4, close at €17.96) failing to reverse the trend. The RSI at 29 reflects a marked oversold configuration, while the share price is trading well below its three moving averages: the 20-day MA at €18.76, the 50-day MA at €18.97 and the 200-day MA at €20.24, representing a gap of 6.77%, 7.80% and 13.59% respectively above the current price.
A historically low valuation in a context of persistently restrictive rates
From a valuation standpoint, according to the consensus of analysts surveyed, Icade shares are trading at approximately 5.8 times expected earnings for the current fiscal year and 6.1 times those of the following fiscal year, multiples that reflect persistent pressure on real estate companies in a high interest rate environment. The macro context is weighing: markets are now pricing in a probability exceeding 50% of another Fed rate hike at the September 15-16 meeting, following a stronger-than-expected August employment report and a stance deemed firm by the central bank president. This prospect of durably restrictive policy rates remains a structural pressure factor for real estate companies, whose valuations are historically sensitive to interest rate movements.
Furthermore, the conversion of a former Neuilly hotel into 166 family housing units, inaugurated on September 4 with Artbridge Investments, illustrates the company's urban recycling strategy, with no direct impact on today's trading. With a share price at an absolute low, the nearest resistance level remains at €19.74, representing a gap of more than 12% above the current level.
