Stock Slump at Deutsche Bank: Potential Solutions in Sight
Deutsche Bank has announced a new share buyback program worth over €8 billion, set to run until November 19, 2021. This program reaffirms the bank's intention to distribute more than €8 billion to shareholders between 2021 and 2025.
The program, which started on a specified date, will see no more than 30 million shares acquired. In 2021, about €2.3 billion - including dividends - will be returned to Deutsche Bank's shareholders, representing a 50% increase from last year.
The news comes amid a consolidation in European bank stocks, with Deutsche Bank's shares falling by 3.5% yesterday. The bank's stock (WKN: 514000) is currently close to the psychological mark of €30.00 euros. However, the share buyback program could provide a positive momentum for its stock price, according to some analysts.
The next support level for Deutsche Bank's stock is at €29.34 euros, represented by the 50-day moving average. This could potentially offer support to the stock price in the short term.
However, concerns about the situation in France could be behind the consolidation in European bank stocks. Commerzbank was the biggest loser among European bank stocks yesterday, with a decline of over four percent.
The share buyback program by Deutsche Bank is part of a broader trend among banks in recent years, where billions of euros have been used for buying back their own shares. This trend has been observed in other financial institutions as well, with Alpine Select extending its repurchase program in 2023 until October 2026.
Despite the recent market fluctuations, DER AKTIONÄR remains fundamentally positive on Deutsche Bank's stock. They consider it moderately valued compared to its peers, and advise investors to stay on board with Deutsche Bank's stock.
In conclusion, Deutsche Bank's new share buyback program is a significant move that could influence the bank's stock price in the coming months. Investors are advised to keep a close eye on the bank's performance and the broader market trends.
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