STMicroelectronics stock tops the CAC 40, but down 8.5% over one month
The semiconductor manufacturer takes the top spot in the Paris index in mid-afternoon, in a market slightly tilted to the upside. The stock is regaining ground a few days after the publication of its third-quarter accounts.
A rebound that puts the stock at the top of the CAC 40 despite a still negative month
STMicroelectronics shares gain 3.06% to €43.16 and lead the CAC 40 ranking, while the index rises 0.29%.
The weekly gain reaches 9.36%, but the stock still falls 8.66% over one month. This rebound is therefore far from erasing the October decline, which led it to its lowest level of the last 30 sessions at €39.09 on October 23.
In the sector, ASML rises 0.54% and ASM International 0.66%, after monthly declines of 12.98% and 21.9%. In the United States, semiconductor stocks fell sharply on Friday (Nvidia -4.22%, AMD -10.88%), and this comparison remains a simple observation of the session.
On October 29, the group published third-quarter revenue of $3.76 billion, up 17.9% year on year, with earnings per share below expectations.
A share price held below its three moving averages, a few percent away from the MA50
Despite the rise of the day, the share price remains below the 20-day moving average (MM20) at €43.58 (a gap of 0.96%), the MM200 at €43.90 (a gap of 1.69%), and the MM50 at €44.20 (a gap of 2.35%).
The three moving averages are grouped within a narrow range, which makes the €43.60 to €44.20 zone the first ceiling to break.
The RSI at 49 is neutral, a sign that the rebound has not yet restored bullish momentum. In terms of valuation, the stock trades at about 35.8 times expected earnings for the current fiscal year, according to the consensus of the analysts surveyed.
At the time of the October 29 publication, the company also disclosed a revenue guidance of $14.5 billion for the following fiscal year.
