TotalEnergies shares, laggard of the CAC 40, drop nearly 2%
The oil company stands out as an exception in a Paris market slightly trending higher. It ranks last in the index, after a historic peak reached last week, while Brent crude posts a sharp correction. The stock has nevertheless risen over the past few months.
A 1.92% decline that leaves the stock well above its moving averages
TotalEnergies shares fall 1.92% to €83.79 in mid-afternoon, while the CAC 40 gains 0.29%. It ranks last in the index, ahead of Euronext (-1.91%).
The stock moves away from its resistance at €85.43, which corresponds to the last close, but it retains a comfortable cushion: the price remains 3.69% above the MM20 and 13.08% above the MM200, which preserves the 12.45% gain over one month. This decline comes in a volatile oil context: Brent trades at $106.47 a barrel and falls 6.14% over the session, after remaining above $110 in recent days, against a backdrop of negotiations between Iran and Qatar around the Strait of Hormuz.
Historically, the stock moves in the same direction as crude oil, a sensitivity measured over twelve years, which notes a past link without saying anything about what follows.
For reference, TotalEnergies reported an adjusted profit up 51% in the third quarter on October 29, and on October 28 the board approved a third interim dividend of €0.90 per share, details of which can be found in the details of this dividend.
A €106.70 price target maintained and a portfolio expanding in Africa and the United States
On the analyst side, CIC Market Solutions confirmed today its buy rating with a target price of €106.70, representing an upside of about 27% relative to the current share price. The analyst consensus remains oriented in this direction.
On the operational front, on October 30 the group sold 40% of the OPL257 block in Nigeria to Sapetro, while remaining operator, as detailed in this sale. It also acquired 25% of 26 Chevron exploration permits offshore the United States.
As for the share buyback, a €2.3 billion program was announced on October 29, and buybacks over the past twelve months amount to €4.8 billion, or 2.5% of market capitalization.
The stock trades at 7.6 times expected earnings for the current fiscal year, according to the consensus of the analysts surveyed. During the week, Shell, another sector stock, falls 1.99% the same day and rises 12.26% over one month, a trajectory close to that of TotalEnergies.
