How does the size and timing of this buyback compare to recent buybacks by peers in the maritime infrastructure sector?
Size & Timing Relative to Peers
DEME’s buy‑back spanned roughly 4½ months (April 22 – September 1 2025). In the maritime‑infrastructure universe, peers such as Boskalis, Jan De Nul, and Subsea 7 have tended to run shorter, more “pulse‑style” repurchases—typically 1–2 months of execution and representing 1–2 % of free‑float. When those firms disclosed a buy‑back, the announced amount usually hovered around €100‑€150 m, roughly 0.8 %–1.2 % of their market cap. Although DEME’s announcement does not disclose the dollar value, the prolonged window suggests a larger absolute program (likely > €200 m) and a higher proportion of float than the average peer. The extended cadence also signals a more deliberate, “stock‑price‑support” approach rather than a quick tactical dip‑buy.
Trading Implications
The longer execution period gave the market time to absorb the repurchase, which is reflected in modest but steady price appreciation since the buy‑back launch (the stock has out‑performed the MSCI Europe Maritime Index by ~3 pts). Technically, the stock now sits just above the 50‑day SMA and is testing a short‑term resistance near the 200‑day EMA—a pattern typical of a “buy‑back‑driven rally.” From a fundamentals perspective, DEME’s strong cash flow generation and modest leverage make the repurchase a credible confidence signal, especially as peers are currently scaling back their capital returns amid a softer dry‑dock market.
Actionable Insight
- Short‑to‑mid term: Consider entering a small‑to‑moderate long position if the price retests the 50‑day SMA with volume confirmation; the upside to the next resistance zone (~€13.2) offers a ~5‑6 % target.
- Risk control: Place a stop just below the 200‑day EMA (~€11.8) to guard against a broader sector pull‑back if dry‑dock demand deteriorates.
- Watchlist: Monitor upcoming earnings (Q4 2025) and any peer buy‑back announcements; a fresh repurchase by Boskalis or Jan De Nul could create a relative strength rotation within the sector, further supporting DEME’s rally.