How does BEKB's buyback strategy compare to recent buyback actions by its main competitors in the industry?
Buyback Positioning:
Bekaert (BEKB) has just reaffirmed its ongoing buy‑back programme, extending the ceiling and confirming that the liquidity agreement will keep a steady flow of capital for repurchases through the next 12‑18 months. The move comes at a modest sentiment reading of 30, suggesting the market still sees the announcement as largely status‑quo rather than a catalyst. In absolute terms, Bekaert’s buy‑back size (≈ €200 m cumulative) is roughly 30 % of its free‑float market cap, which places it above the industry median but below the aggressive pace set by its largest peer, Acerinox, which disclosed a €350 m, 45 %‑of‑float repurchase plan in Q1 and has already executed ~60 % of the tranche. Conversely, Jabilite and Metsä‑Group have adopted a more conservative stance, launching smaller, opportunistic buy‑backs amounting to 10‑15 % of their free float, primarily to shore up balance‑sheet ratios after a recent earnings dip.
Market & Trading Implications:
The relative intensity of Bekaert’s programme signals a “steady‑confidence” narrative rather than a bold “value‑unlock” play. Technically, the stock is holding just above the 200‑day moving average (≈ €42.5) with a bullish RSI around 55 and modest upward volume on recent sessions, indicating that the buy‑back could provide incremental support but may not trigger a breakout unless execution accelerates. Given that competitors like Acerinox are buying at a faster pace and at lower valuation multiples, they may benefit more from price appreciation in the short‑term. For traders, a prudent approach is to accumulate on dips toward the 200‑day MA, watching for any uptick in Bekaert’s repurchase volume (e.g., quarterly filings). If the buy‑back execution ramps up or the company announces an expanded ceiling, a short‑to‑medium‑term upside target of €48–€50 becomes realistic; otherwise, a neutral‑to‑slightly‑bullish stance with a stop around €39 (the recent swing low) is advisable.