Schneider Electric shares rebound to their €231.40 support after a 22% drop in one month
The shares of the Rueil-Malmaison-based equipment maker are recovering in mid-morning trading, in a Paris market trending higher. They nevertheless remain well below their levels of a month ago, after weeks marked by the financing of the acquisition of PTC.
A rebound at a support level already tested in October
Schneider Electric shares gain 1.84% to €235.80, in the upper part of the CAC 40 where they rank among the strongest gainers, while the index advances 0.7%. The stock is rebounding near its €231.40 support, a level about €4.35 below the support it broke on October 23.
The RSI at 37 reflects an easing of selling pressure rather than an established recovery, especially as the 20-day moving average at €247.12 and the 50-day moving average at €270.72 remain well above the share price, by 4.6% and 12.9% respectively. Over one month, the stock is still down 22.2%, a decline that followed the announcement of the PTC acquisition.
Financing of €12 billion now secured for the acquisition of PTC
The group raised €6 billion in equity on October 20, then €6 billion in bonds with maturities ranging from 2028 to 2046, which completes the financing of the acquisition.
On the business side, third-quarter revenue, published on October 16, grew 16.9% organically, above consensus, and the annual adjusted EBITA growth target was raised.
Equity markets are also benefiting this morning from the rebound on Wall Street, where the S&P 500 gained 1.6% on Wednesday. The €231.40 support remains the closest technical level.
