Ipsos stock drops more than 5%, worst performer on SBF 120
Friday's session is particularly challenging for Ipsos, which records the steepest decline on the SBF 120 index at midday. The decline follows an already difficult week for the market research group, in a context of overall stability on the Paris stock exchange.
Ipsos worst performer on SBF 120, stock price clearly falls below its 20-day moving average
Ipsos loses 5.41% during the session, at €37.40, establishing itself as the steepest decline on the SBF 120 for the day. The CAC 40, meanwhile, falls only 0.16% and the SBF 120 declines 0.15%, which highlights the very pronounced nature of the movement on this stock. Over the week, the stock has already lost nearly 5%, amplifying a monthly decline of approximately 2%. From a technical chart perspective, the price is now clearly below the 20-day moving average (€39.03), with a gap of more than 4%, after also falling below the 50-day moving average at €37.60.
This downside crossing of both short and medium-term moving averages reinforces the bearish pressure of the session. The 200-day moving average at €35.47 remains below the support level at €35.74, two levels that constitute the next reference zone in case the movement continues. The RSI at 51, still neutral this morning, is declining rapidly with the session, reflecting the vigor of the selling movement.
Modest valuation but annual gains resisting today's correction
Despite the severity of today's decline, the stock retains gains of more than 8% over twelve months, which puts the scale of the correction into perspective from a longer-term perspective. Quarterly performance remains virtually flat (-0.27%), a sign that today's decline erases part of recent gains without calling into question the underlying trend over the past six months. According to the consensus of surveyed analysts, the stock is trading at approximately 7.2 times the expected earnings for the current fiscal year and 6.6 times those of the following fiscal year, with projected earnings per share growth of 8.3% from one fiscal year to the next.
This modest valuation level could attract attention following such a marked decline, even if the stock's monthly volatility stands at 11%, a level to be considered. The support level at €35.74 is now the technical reference to watch if the decline were to continue beyond today's session.
