Schneider Electric stock plummets 14% over one month
The share of the Rueil-Malmaison equipment manufacturer is losing ground mid-morning, more markedly than the Paris index. The decline occurs following the implementation of the equity component of PTC acquisition financing, and two brokerage firms revised their price targets the previous day.
A capital increase of 6 billion euros to finance the PTC acquisition
Schneider Electric stock declines 2.71% to €245.75 in trading, while the CAC 40 falls 0.63%. The stock is among the strongest declines in the index, without reaching the bottom of the ranking. It has broken through its support level at €252.60: the price has already fallen below this level, which extends a 14% decline over one month. The stock is trading below its three moving averages, with the 20-day MA at 10.86% above the current price, and the RSI at 32.37 approaching the oversold zone.
This movement follows the launch, announced on October 19, of a capital increase of approximately 6 billion euros, reserved for qualified investors and conducted without preemptive subscription rights. It constitutes the equity component of the financing for approximately 22 billion euros of the acquisition of American software publisher PTC, with the acquisition being further financed through debt. The group had also announced a pause in its share buybacks in 2027 and 2028.
Two analyst opinions in opposite directions following the operation
On October 19, CIC Market Solutions lowered its price target from €345 to €325, maintaining its buy recommendation. BofA Securities, by contrast, raised it from €362 to €367, with the same buy recommendation. Relative to the current price of €245.75, these two targets suggest theoretical upside potential of 32% and 49% (see the analyst consensus).
On the economic front, construction figures remain trending downward in France: the sector's climate indicator stands at -17.2 and housing permits are declining 9.5% year-over-year, according to Eurostat and SDES. Only one financial event is worth noting for the remainder of the session: the CAC 40 is moving under the pressure of French debt tensions, ahead of Moody's decision on the country's rating, expected on October 23.
