STMicroelectronics stock, bottom of the CAC 40, drops 20% in one month
The semiconductor maker sits at the bottom of the Paris ranking, while the index rises mid-morning. This decline extends a several-week slide in a European sector that is also falling.
A 20% monthly decline leaves the stock below its three moving averages
STMicroelectronics shares fall 1.91% to €40.11, the last place in the CAC 40, while the index gains 0.7% intraday.
Over one month, the decline reaches 20.33%, after the stock had topped the index on Monday before falling back as early as Tuesday. It now trades below its 20-day moving average (MA20, a gap of -5.17%), as well as its 50-day and 200-day moving averages, and is approaching support at €39.47, a level close to where it had hit a 30-session low at the end of October.
The move is shared by its European peers: ASML fell 1.70% and ASM International 0.26%, after monthly declines of 20.61% and 28.06%. In the United States, Micron dropped 7% on Wednesday and Nvidia 3.17%, according to the previous day's closing prices.
Third-quarter results up 17.9% and HSBC cuts its price target
The company published on October 29 revenue of $3.76 billion for the third quarter, up 17.9% year on year, with operating income more than doubling to $367 million. Since then, the stock has not regained momentum and has lost 7.53% over the week.
On the analyst side, HSBC lowered its price target on November 3 from €81 to €70, while maintaining a buy rating: the target still sits about 75% above the current price.
The analyst consensus remains the reference point for gauging this gap. The RSI at 39 remains below the neutral zone, with no oversold signal, and support at €39.47 is the nearest level.
