Rémy Cointreau Shares Drop 3.41% to €39.64 Ahead of Q4 Release

Stock Falls Below Its 20-Day Moving Average at €40.50 and Moves Away from Its Resistance at €42.24

Rémy Cointreau's stock has fallen below its 20-day moving average, located at €40.50, by a margin of 2.12%. This decline erases the rebound movement observed at the beginning of May, when the stock had surpassed its resistance at €41.30. The price is now in the lower part of the Bollinger Bands (at 24% of the range), only about 2.1% from the lower boundary set at €38.82. The RSI at 54 remains neutral, indicating neither overbought nor oversold conditions. The support at €37.04 identified in the data is not immediately threatened, but the 200-day moving average at €42.96 remains 7.73% above the current price, indicating that the medium-term trend is still bearish. The stock has declined by 17.49% over the past year.

Persistent Selling Pressure and Anticipation of Q4 Release on June 4

According to reviewed statements, the cumulative net short positions reach 5.97% of the capital, driven by five funds including AQR Capital Management (2.71%), AHL Partners (0.96%), and Numeric Investors (0.80%). The level has slightly decreased over thirty days (-0.15 point), but remains high. This selling pressure is part of a deteriorating sectoral environment for French spirits, with cognac exports having decreased by 10.9% in value in 2024 according to the FEVS report. In terms of valuation, the consensus of 18 analysts via yfinance places the projected P/E ratio at 24.1 times the earnings for the current fiscal year, compared to 15.9 times on average for the Consumer Staples sector. The expected growth in earnings per share from one fiscal year to the next is set at 9.1%. During the annual sales release on April 30, the group confirmed a nearly stable revenue at €935.3 million, while warning of an organic decline in operating income in the low double-digit to mid-teens range. The next appointment is set for June 4 with the details of the fourth quarter.