Volvo Cars: Geely Buys, Analyst Lowers Rating
yesterday at 10:54 ∙
Volvo Cars is experiencing conflicting market developments. Its main owner, Geely Holding, significantly increased its stake following a recent share price decline, signaling confidence. However, this positive development is overshadowed by a major analysis firm lowering the company’s stock rating, citing a revised outlook.
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Geely Holding acquired approximately 5.84 million additional shares in Volvo Cars between February 6 and 11.
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The total value of these share purchases was approximately SEK 136.9 million, with an average price of SEK 23.43 per share.
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Following these transactions, Geely’s ownership in Volvo Cars is now nearly 79% of the capital and votes (more precisely, 78.9%).
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Investment firm Bernstein downgraded Volvo Cars’ rating from ”market perform” to ”underperform”.
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Bernstein also significantly lowered Volvo Cars’ target price from SEK 29 to SEK 17.
There is speculation on the Nordnet forum about whether Geely will buy Volvo Cars out of the stock exchange. Could we see a redemption procedure this year?? It’s impossible to know, but it could be profitable for owners at these price levels. If I recall correctly, the IPO price was 53 SEK back in 2021, and after the initial hype, the share price performance has been weak. Polestar has already been spun off and distributed to shareholders.
””Geely Holding Group owned before the latest purchase of shares approx 79% of the total number of shares, the liquidity in the share is becoming increasingly limited, there is a possibility that they increase further to 90% ownership and request compulsory redemption of the remaining shares and delist the company from the stock exchange…””
““A clear signal. Guess they will buy out the company from the stock exchange if the stock does not perform “better”. Good to have as an airbag in one’s investment case. Nothing I strive for, but I hope the stock remains on the stock exchange for a long time and that the price rises with high DA 2027 and beyond. He who lives shall see””
““There will probably be an acquisition before summer!””