The elEconomista.es portfolio is confident in a recovery in the share price of the integrated oil company Ibex 35: Repsol. This was the objective of this active management strategy when it took positions at 14.32 euros and it remains so at current prices. So far, the listed prices of gas and crude oil have harmed companies like Repsol on the stock exchange. reduce your profit margins and reduced profit forecasts, particularly compared to historical years such as 2022.
THE Oil company Ibex 35 operates in the Eurozone 12.5 which implies a decline of nearly 8% so far this year. And yet, the expert consensus has not removed the buy rating over this period, while the company still leads the ranking of The League of Ibex of elEconomista.es which crosses market recommendations collected by Bloomberg and FactSet.
This leads to The wallet establish a new entry point into the oil company in the 11.5 euros, a further decrease of 8%. This investment strategy consisted of taking positions in two Spanish stocks, Iberdrola and Global Dominion, in order to provide an outlet for the current liquidity of the Portfolio. He has already given up buying Catalana Occidente because the stock is trading at historical highs above 40 euros and it is now his turn to say goodbye to Iberdrola.
After collecting the last dividend of the utilities The operation was closed with a profitability of 7.5% (yield without taking into account said dividend) with the idea of buying back once it fell to 11.36 euros per share. Well, there was no luck and see you later, Mari Carmen, because Iberdrola escaped at 12.86 hours at which it closed this week and that means reaching historical highs.
Thus, the 10,000 euros intended for Iberdrola will be used to buy Repsol at 11.5 euros per share, which are almost the lowest of the year and levels not seen since October 2022. The reference is set by Ecotrader’s technical advisor, Joan Cabrero, who marks a support in the 11-11.5 zone because this area implies a correction of 38.2% of the last rise that took Repsol to 15.65 euros.
The exit target remains at 17 euros per share, both for the position already opened and for the second operation in progress, which would obtain a profitability of 18.5% and 37%, respectively. However, the possibility of spreading and closing the operation before reaching 17 euros is being studied.
On the other hand, the oil company is offering investors one of the most attractive profit-sharing policies in years. Repsol’s gross dividend yield exceeds 7.5% at current prices with the announcement of 0.975 euros by 2025. In parallel, and taking advantage of the stock market fall of Repsol, the company launched this month a share buyback program (20 million shares in total) with the idea of amortizing them and reducing the company’s capital by 1.7%, or the maximum investment of 421.6 million euros before the end of the year.
