Sodexo Shares Drop Nearly 2%: Analysts Divided, Short Sellers on the Rise
The stock of the group catering company falls mid-day, despite an upward trend in the SBF 120. Two firms updated their opinions yesterday, with diverging conclusions. The stock is trading below its 200-day moving average, in a context where short positions are increasing.
Citi Raises Target to €49 While Alphavalue Moves to 'Reduce' with a Target of €42.90
Two analysts updated their opinion on Sodexo on May 20. Citi maintains a neutral stance and raises its price target from €48 to €49, representing a potential of about 9% compared to the current price of €44.96. Alphavalue, on the other hand, downgrades its recommendation to 'reduce' and lowers its target from €43.80 to €42.90, a level now below the day's price.
These divergent views illustrate the opposing readings of the case after the rebound observed at the beginning of May. The stock had notably gained 2.4% on May 11 to reach its 50-day moving average, as reported in a publication on May 11. Over one year, the performance remains heavily negative, at -23.73%.
The declared net short positions also signal ongoing caution around the stock. According to the statements reviewed, nine funds together hold 6.52% of the capital in net short position, up 0.78 points over thirty days. This increase indicates that some institutional investors remain positioned against the stock or seek to cover exposure. This point deserves to be followed without being interpreted in isolation.
The Stock Remains Below Its 200-Day Average Despite a RSI Returning to Neutral Zone
At €44.96, the price is above the MM20 at €44.16 and the MM50 at €43.52, but remains 4.5% below the MM200 at €47.08. The latter, which had served as a ceiling during the rebound on May 18 at €46.56, continues to materialize the dynamic medium-term resistance. The RSI at 55 appears in the neutral zone, without signaling extremes.
The MACD remains positive, with a line at 0.91 above its signal at 0.59, reflecting the short-term bullish dynamic that had been established since the beginning of May. The stock retains a margin before its support at €38.62, and the major resistance is at €47.88.
The decline of the day occurs while the SBF 120 gains 0.43% in session, which accentuates the relative underperformance of the stock. The next technical deadline to watch remains the crossing of the 200-day moving average, a threshold that the stock has not managed to sustainably reclaim for several months.
