Renault shares decline 3.5% and become the worst performer in the CAC 40
Despite confirmation of its investment grade entry by Moody's the previous day, Renault faces marked selling pressure this Wednesday morning, establishing itself as the weak link in the Paris index. The decline occurs in a context of a generally stable market, as the U.S. Federal Reserve is expected to raise its benchmark rates for the first time in three years.
Renault worst performer in the CAC 40, pulling back below its 20-day moving average despite a slightly rising market
Renault shares decline 3.41% to €28.59 during the session, while the CAC 40 advances 0.17%. The automaker occupies the last position in the index, far from the second-largest decline of the day. This movement brings the stock below its 20-day moving average at €28.84, with a negative gap of 0.87%, after trading above this average in recent days. The 50-day moving average at €27.82 remains well below the current price, offering a safety net at approximately 2.77%, while the 200-day moving average at €30.01 acts as resistance above, with a 4.73% gap.
The RSI at 57, still in neutral territory, does not yet reflect an overbought configuration despite the recent rebound in the stock. Support at €27.22 remains distant, but resistance at €29.72, which the stock had touched in early September, is regaining prominence. Over the week, performance declines 3.35%, erasing part of the rebound observed since the summer lows.
Two recent analyst opinions and elevated short positions frame the stock's dynamics
Two revisions of analyst opinions date from the last two days. Morgan Stanley upgraded on Tuesday, September 14 its rating from "underweight" to "equal-weight" while raising its target from €25 to €31, representing potential upside of nearly 8.5% from current levels. CIC Market Solutions maintains a buy opinion with a target of €40, implying potential of around 40% from current levels. These two positions frame a stock whose valuation remains contained: according to the consensus of surveyed analysts, the stock trades at approximately 4.4 times expected earnings for the current fiscal year. On the short side, the bearish bet remains significant.
According to disclosed positions, six funds cumulate 6.61% of shares sold short, a level virtually stable over thirty days (compared to 6.56% a month earlier). This elevated level reflects cautious institutional positioning toward the automaker, without however accelerating significantly. It should be noted that when publishing first-half 2026 results on July 30, the group posted revenue growth of 9.5% and mentioned among its risks the difficult environment linked to the Middle East crisis, which weighs on raw material and energy costs. Brent crude trades at $108.08 per barrel this morning, up 10.8% over the last eight sessions, a context that amplifies these cost pressures on the automotive sector.
