STLAM has moved from a quietly deteriorating setup to an outright price breakdown — down 12% on the week and nearly 19% over the past month, now trading at €5.27, a level that puts the consensus analyst target of €7.76 at a 47% premium to the current price.
The price action this week is the story. The stock fell 6.7% in a single session on June 23, extending a slide that has now carried STLAM through multiple support levels. For context, the C-suite sold shares on June 1 at €7.76 — a price the stock has since surrendered completely. The sell-off has dragged STLAM broadly in line with its heaviest peer, VOW3, which also fell 11% on the week, while BMW dropped nearly 11% as well. The European auto sector is broadly under pressure, but STLAM is underperforming even that difficult backdrop — RNO and PAH3 each fell 3-4% on the week by comparison, and dropped 6.5%, suggesting the sector headwind alone does not fully explain the STLAM move.
The borrow market is not the driver here — lending conditions remain loose. Availability runs at roughly 528%, meaning there are more than five shares available to borrow for every one currently lent out. That is down from around 700% earlier in June as demand for borrows has ticked up, but still well within normal territory. Cost to borrow is negligible at 0.76%, down slightly on the week. The ORTEX short score has climbed steadily — from 40.4 on June 11 to 44.0 on June 23, a two-week grind higher — but it remains in the bottom third of the universe on the utilization rank factor (38th percentile), and the short score itself sits below 50. This is not a squeeze setup. Shorts are building incrementally, with plenty of room to add, and borrowing costs give them no urgency to cover.
The Street is increasingly uncomfortable with the valuation story, even at these depressed levels. The price-to-book has fallen to 0.28, and the trailing P/E sits at 4.8x — both numbers that look cheap in isolation but reflect deep uncertainty about earnings trajectory. The EV/EBITDA of 2.8x is similarly compressed. Quality metrics are the counterweight: the Piotroski F-Score is at 1, return on assets is negative, and free cash flow margins remain in negative territory, per the prior stock score note. The analyst consensus mean target of €7.76 implies substantial upside, but with no recent analyst changes recorded and the stock having broken sharply lower since the last round of estimates, that figure warrants caution — it may lag the deteriorating fundamental picture.
Institutional ownership adds a layer of complexity. The register is dominated by strategic holders: Lingotto Investment Management (the Agnelli family vehicle) holds 15.5% and has not moved its position. Établissements Peugeot Frères holds 7.7%, also unchanged. These cornerstone holders are not sellers — but they are not buyers either. Among active managers, Goldman Sachs trimmed its position by roughly 20 million shares in the period to May 12, while Bank of America and BNPP Asset Management both added meaningfully in the March-April window. The net institutional flow picture is mixed, with no clear accumulation signal from the more active names.
The next earnings event is scheduled for July 30. After the April 30 print — which triggered a 7.7% single-day decline followed by a further 3.4% over five days — the market's reaction function for STLAM is well-established: bad news is punished immediately and the weakness persists. The May 21 print was the exception, with a 1.1% move on the day recovering to 8.7% over five sessions, suggesting the stock can bounce when results clear the bar. With the stock now trading nearly 20% below where it was a month ago, July 30 becomes the next meaningful test of whether the current price already discounts the operational pressure or whether it still has further to travel.
See the live data behind this article on ORTEX.
Open STLAM on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
