STMicroelectronics stock rebounds after its 24% plunge over three months
The semiconductor manufacturer is regaining ground at midday, after a session where it had lost momentum. However, the stock remains below all its moving averages, following a quarter heavily marked by declines.
A rebound that does not erase the lost moving averages
The STMicroelectronics stock is advancing 1.65% to €41.68 during trading, slightly outperforming the CAC 40 (+0.49%). It holds the sixth place in the Paris index, far behind EssilorLuxottica (+14.02%). This upturn comes after the stock broke through its support at €41.17 on Tuesday.
The rebound is supported by this level, now barely more than 1% below the price. Moving averages all remain above the current price: the 20-day MA at €45.81 is 9% above, the 200-day MA at €43.10 is 3.3% above. The RSI, at 34.71, remains close to the oversold zone.
A quarter at -24% that today's rebound only partially offsets
Over three months, the stock loses 24.09%, and today's gain only offsets a tiny fraction of it. Over the week, the loss stands at 4.92%, while the one-year gain remains at 60.55%. On the analyst side, TD Cowen lowered its price target on October 19 from €48.50 to €45.00, while maintaining its "hold" rating. This target remains 8% above the current price.
The two comparable European stocks are also advancing today: ASML Holding gains 1.15% and ASM International 2.05%. On the American side, Nvidia (-0.29%) and Lam Research (-3.21%) declined at Tuesday's close. The stock, which has lost 4.09% over one month, has its reference support at €41.01, very close to the current price.
