Legrand's Shares Bounce Back by 2% and Rise Above Its Moving Average
The electrical infrastructure specialist shows a significant recovery in early afternoon trading, amidst a well-oriented CAC 40. The stock ranks among the notable gains of the Parisian index, after several weeks of decline that had distanced it from its spring peak.
Legrand's Stock Gains 2.11% to €147.55 and Moves Above Its 20-Day Moving Average
Legrand's stock rises by 2.11% to €147.55 in early afternoon trading, while the CAC 40 index is up by 0.52% at 8,411 points. The stock has moved above its 20-day moving average, which stands at €143.79, showing a positive gap of 2.61%. However, it remains slightly below its 50-day moving average at €148.52, which is the next technical threshold to cross to confirm the recovery. The RSI at 48 indicates a neutral setup, consistent with a rebound following a significant decline: the stock is still down 4.22% over the week, yet it maintains a gain of 14.51% over three months. The 200-day moving average at €140.11 remains well below the current price, indicating that the medium-term trend is still bullish.
Sustained External Growth Dynamics in Critical Infrastructure
This movement occurs as the group continues its strategy of targeted acquisitions in data centers and energy transition. Legrand announced in early June the acquisition of American company Girtz Industries, marking its sixth external growth operation since the start of the year. This expansion dynamic contrasts with a still deteriorated construction context in Europe: the climate in French building construction dropped to -18.2 in June according to Eurostat, and French production has declined by 2.8% year-over-year. The group's diversification towards critical infrastructures and data centers allows it to partially break free from this cycle. On the stock market front, crossing the 50-day moving average of €148.52 will be the next technical milestone to watch, following the crossing of the 20-day mark achieved this Tuesday.
