Sopra Steria Shares Drop Nearly 3% and Fall Below Their MM20
The French IT services company's stock is significantly down at midday, even as the SBF 120 index trends upwards. The stock is among the biggest losers in the index, as the downward pressure on short positions has eased in recent weeks.
The Stock Falls Below Its MM20, Weakening Its Spring Rebound
Sopra Steria's stock has dropped 2.85% to €139.70 during the session, while the SBF 120 has gained 0.4%. This decline brings the stock below its 20-day moving average, which stands at €147.63 (a gap of -5.37%), a threshold that was lost at the end of June and briefly regained since. The stock still maintains a cushion above its longer averages, 1% above the MM50 (€138.26) and 0.8% above the MM200 (€138.63), so that both lines now intersect near the current price and will form the next test for the underlying trend. During the session, the stock is among the largest declines in the SBF 120, following the downturn of other technology stocks in the index.
The RSI at 49 remains neutral and does not indicate any particular selling exhaustion. The movement erases part of a still largely positive quarter, at +21.8%, while the performance over one year remains degraded at -32.5%. The identified technical support is now at €130.10.
Bearish Bets Recede from a High Plateau in May
The net short positions declared on Sopra Steria have returned to 2.96% of the capital, supported by three funds according to the declarations consulted, down from 3.27% a month ago (-0.31 point). This decline reflects a gradual lightening of bearish bets since a level that was among the highest in the SBF 120 in the spring. Some of the short participants seem to be covering, although this movement is not massive nor does it presage a lasting reversal of sentiment. The level remains to be monitored, without overinterpreting it in one direction or another.
Based on the consensus of analysts surveyed, the stock is trading at about 7.8 times the earnings expected for the current fiscal year and 7.2 times those of the next fiscal year, with projected EPS growth of +9.3% from one year to the next. On the operational side, the IT services company confirmed on June 10 the consolidation of its 2,000 Toulouse employees onto a single campus in Blagnac by fall 2027, as part of its commitment to the aerospace and space sectors. The next financial milestones will come with the publication of the semi-annual accounts this summer.
