Rémy Cointreau share falls, 5.3% of capital sold short
The cognac group's share declined sharply on Tuesday on the Paris Stock Exchange, with the SBF 120 nearly stable. The pullback occurs as the stock had accumulated nearly 9% in gains over the past month, while short positions remain at elevated levels in the capital.
A decline of 2.35% that brings the share back into contact with its 20-day moving average
Rémy Cointreau fell 2.35% to €46.64 during trading, compared to virtually no change for the SBF 120 (-0.02%). The share ranks among the index's steepest declines, in a context where Pernod Ricard also retreated 1.75%. Despite this pullback, Rémy Cointreau remains well positioned above its three moving averages: the MA20 at €45.61, the MA50 at €43.75 and the MA200 at €41.13, representing a gap of more than 13% compared to the latter.
The RSI at 62, showing slight deceleration, reflects a retreat in buying pressure after several weeks of sustained momentum. The resistance level at €49.02, already tested without success at the end of July, remains out of reach for now, while support at €41.66 appears still far below the current price.
Elevated short positions and solid monthly performance that contrast with today's decline
Over a rolling one-month period, Rémy Cointreau shares still show a gain of 8.92%, and 16.66% over three months, which makes today's consolidation consistent with recent sustained bullish momentum. Over one year, however, the share remains in negative territory at -9.53%, reflecting a difficult environment for the sector: cognac exports declined 10.9% in value in 2024, and French export spirits as a whole fell 6.5% over the fiscal year. According to reported declarations, five funds collectively account for 5.36% of capital sold short, a level virtually stable over thirty days (+0.08 percentage point).
This figure, significantly above the 3% threshold generally considered meaningful, indicates a non-negligible fraction of institutional investors positioned bearishly on the share. Without notable acceleration over one month, this level warrants close monitoring over time, particularly as the next earnings release approaches.
