The hedge fund Marshall Wace open a new short position on Sabadell Bank 0.5 percent of the share capital with a charge against the entity’s shares of about 17.7 million euros.
The hedge fund accumulated three bearish attacks this quarter against the best value of the IBEX 35 so far this year.
Marshall Wace’s view that the falls have to reach Banco Sabadell coincides with the fact that the stock’s appreciation potential is almost exhausted.
The market consensus sets an average 12-month target price of 0.66 euros, practically the same at which the securities are listed, 0.64 euros.
The consensus is cautious
The panel valuations compiled by Bloomberg also agree with Marshall Wace in the sense that most experts recommend “holding” the positions, 60 percent, and the advice to “sell” outweigh the advice to “buy”. .
Banco Sabadell shares have fallen by about 10 percent on the IBEX 35 since the first attack by Marshall Wace and is among the worst values on the selective in the quarter, although it has risen 80 percent in the accumulated annual rate.
Marshall Wace is not a rookie in the capital of the Catalan entity since he entered for the first time in 2010 and his previous attacks were in 2019, as recorded in the records of the National Securities Market Commission.
Shareholders support César-Bueno
The hedge fund thus takes over from Samlyn Capital, which ceased its attacks above 0.5 percent, the minimum required to be declared by the CNMV, at the end of the third quarter after Citadel Europe do the same in the second trimester.
Shareholders demonstrate with their purchases that they trust the recipe of the bank’s CEO, César González-Bueno, to face the seedling of BBVA, despite the presence of bears and the cautious view of the experts.
The merger between the Basque and Catalan entity did not come to fruition when BBVA considers that TSB it posed undue risk to the group. Instead, the British subsidiary of Banco Sabadell became the engine of the latest results.
Banco Sabadell walks towards its historic pay out
BBVA’s announcement of acquiring the part it does not control of its Turkish subsidiary Guarantee ended up undoing the merger option and the stock discounted the news with falls caused by the sales of investors who were still contemplating the possibility.
González-Bueno must now comply with the trust granted by the shareholders and concentrate on the objectives of the strategic plan until the payout is brought to the historical average offered by Banco Sabadell.
The bank approved the return to the cash dividend and assumed a payout target of 30 percent, still below its historical average of between 40 and 50 percent.
The increase in profitability, with TSB offering positive results, a high improvement in income, a reduction in costs and a decrease in the cost of risk are the levers that will serve to drive net profit and greater shareholder remuneration.