Schneider Electric shares in the lead of the CAC 40, up 6.5% in one week
The electrical equipment group based in Rueil-Malmaison extended its rebound from the week in a Paris market trending upward. The stock nevertheless remains well below its long-term moving averages, after a quarter marked by the financing of the acquisition of the American software company PTC.
A 6.3% rebound over the week that leaves the stock far from its long-term averages
Schneider Electric shares rose 1.46% to €246.05 during the session, while the CAC 40 gained 0.74%. This gain places the stock in sixth position in the Paris index, behind Saint-Gobain, LVMH, Hermès, Sanofi and Kering. Over seven days, the stock has recovered 6.26%, a gain that offsets only part of the 19.53% decline recorded over three months.
The stock thus moves back above its 20-day moving average (€240.14), but remains 7.22% below its 50-day moving average (€265.19) and 8.47% below its 200-day moving average (€268.82). The support at €227.85, briefly breached during the session on Monday before a rebound, remains the reference level on the lower end of the range.
PTC financing completed in two stages, with €6 billion raised through equity and then bonds
On October 20, the group launched a capital increase of approximately €6 billion, without preferential subscription rights, before adding on October 29 a bond issue of the same amount, with maturities ranging from 2028 to 2046. These two transactions finance the acquisition of PTC and have weighed on the stock for several weeks.
On October 16, however, Schneider Electric had published third-quarter revenue of €11,460 million, up 16.9% on an organic basis and above the high end of consensus expectations, while also raising its annual organic adjusted EBITA growth target.
The MACD (-7.62 versus -9.76 for its signal line) shows a narrowing gap, which extends the recovery momentum of the past sessions.
