Stellantis Shares Bounce 2.5% in Attempt to Recover from Multi-Year Low
After several weeks of continuous decline that brought the stock to its multi-year lows, the Italo-American manufacturer is regaining some color at the start of the session. The rebound occurs in a CAC 40 that is trending downward, even as the French automotive market posted growth figures for June.
A Technical Rebound After a More Than 25% Decline Over a Month
Stellantis shares are up 2.57% at €5.11 in mid-morning trading, ranking second in the CAC 40 just behind Renault (+3.87%), while the Paris index is down 0.27%. The rebound follows a sharp drop: the stock is still down 25.48% over a month and nearly 40% over a year, despite today's recovery. The movement appears to be a technical recovery from an oversold zone, with an RSI at 29 indicating seller exhaustion in recent sessions. However, the price remains significantly distant from its medium-term benchmarks, about 17% below its MM20 (€6.14) and 33% below its MM200 (€7.71), indicating that the technical lag is still considerable.
The support identified at €5.27 was breached during yesterday's low, leaving the stock in technically fragile territory despite today's rebound. According to automotive platform data, the French light vehicle market jumped 8.4% in June to 224,338 units. Stellantis only grew by 3.81%, a pace below the overall market, which mechanically erodes its market share in its main European outlet.
Valuation Returns to Very Low Multiples Despite Ongoing Distrust
According to the consensus of surveyed analysts, the stock is trading at about 6.2 times the earnings expected for the current fiscal year and 3.4 times those of 2027, multiples that reflect the accumulated distrust in the stock after several warnings and reduced visibility on volumes. The stock has lost its MM50 at €6.46 for several weeks and continues to trade below all its moving averages, with the MACD remaining in negative territory at -0.26. The downward trend had been fueled by successive target adjustments by brokers and by a series of recalls, notably the global recall of 1.3 million Jeeps announced on June 11.
Today's rebound is accompanied by a relaxation of the VIX to 16.95, which has fallen nearly 4%, easing pressure on cyclical stocks. The next key milestone for the stock will be the semi-annual report expected at the end of July, which should provide more details on volumes and the group's operating margin.
