Sopra Steria Stock Falls 2% and Dips Below its 20-Day Moving Average
This Thursday morning, the stock of the French IT services company weakens, despite an overall upward trend in the SBF 120. The stock erases some of the gains made since spring and is testing a short-term technical threshold closely watched by the market.
Stock Falls Below its MA20 and Faces Short-Term Downward Momentum
Sopra Steria's stock falls by 1.95% to €140.50, while the SBF 120 index is up by 0.22%. The stock has fallen below its 20-day moving average of €147.63 (a gap of -4.83%), yet still holds a slight cushion above its 50-day (€138.26) and 200-day (€138.63) moving averages. The weekly loss now stands at 6.71%, although the three-month performance remains positive at over 25%.
The RSI at 49 indicates a market without a clear direction, consistent with the consolidation phase observed after the spring rebound, as previously reported during the June 18 session. The technical support is identified at €130.10 and resistance at €155.70, a level that had served as a target during the mid-June upward momentum.
Bearish Bets by Funds Decrease Over the Past Month Amid a Tense Currency Environment
According to the statements reviewed, three funds hold a cumulative 2.85% of the capital in short positions, down from 3.27% a month ago (-0.42 point). This movement reflects a partial covering of bearish positions, without a radical reversal of positioning: a significant portion of the capital remains bet against the stock, which suggests monitoring the development without overemphasizing the current level. In terms of valuation, the stock is trading at approximately 7.9 times the earnings expected for the current fiscal year according to the consensus of surveyed analysts, with an anticipated 9.2% growth in earnings per share for the following year.
The session also unfolds against a backdrop of the dollar reaching a thirteen-month high, with the greenback's index approaching 101.8 on Wednesday, altering the exchange rate differential for internationally exposed IT service companies. On the corporate front, the exclusive negotiation over the Manufacturing Engineering branch of Daher announced at the end of May remains ongoing, among operations that could fuel the group's external growth.
