Ontex Group shares hit historic low at €1.51 following earnings announcement
The Belgian disposable hygiene products manufacturer is declining during the session following a revision of its annual forecasts, marking a new absolute floor. The Paris market remains virtually stable.
Historic low at €1.51 after downward EBITDA guidance revision
Ontex Group shares are down 10.08% at €1.57, after touching €1.51 during the session, a historic low that wipes out the previous record of €1.63, reached on October 20. The group published its third-quarter results this morning and lowered its EBITDA guidance to €143-148 million, with quarterly EBITDA declining by 49%.
Its purchase costs increased faster than its selling prices, and the removal of its Russian subsidiary from the consolidation scope also contributed to the revision. The share has fallen 31% over three months and 75% over one year, while the CAC 40 is stable (-0.03%).
All thresholds have been broken, RSI drops to 28
The price broke through this morning the lows of the last 30, 150 and 250 trading sessions, all located at €1.70, which now become resistance levels: there is no longer any identifiable support below the current price. It is trading 12.8% below its 20-day moving average and 25.6% below its 50-day moving average, a gap that reflects the brutality of the recent decline.
The RSI at 28 indicates a configuration close to oversold. According to the consensus of analysts surveyed, the share is trading at approximately 3.6 times the earnings of the current fiscal year.
