Pluxee Shares Bounce 2% but Still Down 44% Year Over Year
The employee benefits specialist is showing signs of recovery on the Paris Stock Exchange in a market that is significantly on the rise. However, the stock remains weak due to a long-term downward trend, despite the technical rebound observed during the session.
A 2% Bounce Struggles to Offset the Underlying Deterioration of the Stock
Pluxee shares gained 2.01% to €11.18 in early afternoon trading, in an SBF 120 that rose by 1.82% at the same time. However, the movement is modest compared to the annual performance, with the stock still down nearly 44% over the last twelve months. Over the past month, the decline reached 7.68%, placing the stock behind the general rebound of the Parisian market. The rebound today barely mitigates the weekly drop of 3.12%. Direct competitor Edenred advanced by 1.53% at the same time, in more measured proportions. It is worth recalling that the stock was penalized at the end of May by the revelation of a procedure by the Chilean competition authority targeting its local subsidiary, a case that continues to weigh on the group's stock trajectory.
The Stock Remains Below Its Three Moving Averages; RSI at 31, Close to Oversold Territory but Not There Yet
The rebound occurs while the stock price is below its three moving averages: the MM20 at €11.67 and the MM50 at €11.72 are approximately 4.2% and 4.6% above the current price, while the MM200 at €12.94 remains more than 13% away. An RSI of 31 indicates selling exhaustion in recent sessions and supports the interpretation of a technical rebound from the support at €10.96, which corresponds to the previous day's closing price. The resistance at €12.52, identified earlier, remains the next graphical milestone to monitor. Based on the consensus of analysts surveyed, the stock is trading at about 7.5 times the earnings for the current fiscal year, with expected EPS growth limited to 1.3% from one year to the next. In mid-May, Jefferies had raised its target on the stock, contributing to a temporary rebound to €12.31, a level since abandoned. Crossing the MM20 at €11.67 will be the next technical milestone to observe.
