Pernod Ricard Shares Rise 2%, Surpassing the 20-Day Moving Average
The stock of the French spirits giant is up at mid-session, in a Parisian market significantly buoyed by the CAC 40's rebound. The stock is regaining its footing on its short-term technical benchmarks, after several weeks of weakness. The backdrop remains dominated by a challenging sector environment for French spirit exporters.
The Stock Surpasses its 20-Day and 50-Day Moving Averages
At midday, Pernod Ricard is up 2.06% at €64.28, compared to €62.98 at the previous close. This movement allows the stock price to surpass the 20-day moving average (MM20) of €63.13 and approach the 50-day moving average (MM50) of €63.92, with respective increases of +1.66% and +0.41%. However, the stock remains significantly below the 200-day moving average, at €76.00, reflecting a lag of 15.55% that highlights the extent of the underlying correction. The RSI at 50 indicates a balance between buyers and sellers, consistent with a price that does not stray far from its short averages.
Over the week, the stock has gained 5%, which mitigates an annual loss close to 29%. Regarding short positions, four funds cumulatively hold 3.25% of the capital sold short (according to reviewed declarations), slightly up over thirty days (+0.21 point). This level, above 3%, signals that some institutional investors remain positioned bearishly on the stock, though it does not indicate a massive movement of distrust. This point deserves attention, without being overinterpreted in light of the rebound dynamic observed over the past week.
A Rebound Driven by the CAC 40's Improvement, Amid a Still Challenging Sector Context
Today's rise occurs in a distinctly bullish Parisian session, with the CAC 40 up 1.71% and the SBF 120 up 1.66%. The decline in the VIX to 19.12 (-13.95%) accompanies this easing movement, as announcements of a possible de-escalation in the Middle East have brought Brent crude back to $89. Among comparable stocks, Rémy Cointreau is up 2.37%, indicating that the segment of spirit exporters is also benefiting from the general market improvement.
The sector context remains degraded: throughout 2024, cognac exports have fallen by 10.9% in value according to the FEVS, and the overall French spirits sector has declined by 6.5%. This backdrop weighs on the group's valuation and partly explains the 10.4% decline over three months. For the upcoming sessions, the stock's ability to break through the resistance identified at €66.06 will be a technical benchmark to watch, following the reconquest of the short moving averages.
