Rexel shares gain 7.5% in one week and recover their 50-day moving average at €35
The electrical equipment distributor rebounds sharply in a well-oriented Paris market. The stock returns to its medium-term benchmarks, after a month marked by financial operations and a well-received quarterly publication.
A rebound that brings the price back to its 50-day moving average
The stock Rexel gains 2.27% to €35.17 intraday, while the CAC 40 rises 1.19%. This increase remains measured: the stock is up 7.49% over one week, but is barely above its level from a month ago (+0.2%).
The price is now above its 20-day moving average (€33.73, a gap of 4.27%) and below its 50-day moving average (€35.19, a gap of -0.06%). The 200-day moving average, at €36.06, remains 2.47% above the price.
The MACD has moved back above its signal line, supporting this recovery after several sessions of decline. Rexel had published on October 22 sales up 11.4% for the third quarter and raised its annual growth target to approximately 7%.
Financing operations and share buyback shed light on the past month
The month was busy for the group: a €500 million fundraising and the acquisition of the American company GCG at the end of September were followed by a phase of decline, until the publication of third-quarter sales. Over one year, the stock still shows a gain of 19.79%.
Rexel is also running a share buyback programme: €64 million has been repurchased over twelve months, or 0.6% of market capitalisation, according to the latest declaration read on April 29.
In terms of price reference levels, support stands at €31.72 and resistance at €37.36, about 6% above the current price. This €37 zone also marks the level at which the stock traded in early May.
