Business · Companies · 1 hr ago
Long-term investors take new positions in Sabadell
Long-term investment funds have bought shares in Sabadell, the Spanish bank, in recent months.
The new investors include Prudential, Mitsubishi UFJ Asset Management, Deka Investment, CaixaBank AM and Janus Henderson.
They are replacing some investors who bought shares to profit from events such as BBVA’s hostile takeover bid for Sabadell, which ended without a deal.
Sabadell’s sale of its British subsidiary TSB to Santander was followed by a special dividend of nearly €2.5 billion, paid in May.
The new investors are attracted by recurring dividends and improving profitability, rather than a quick gain from a single event.
Sabadell has set a target of a 16% return on tangible equity by 2027 and says it will distribute excess capital once it exceeds 13%.
Some investors see room for the share price to rise, while others question the bank’s prospects operating in a single geography without the scale and range of businesses they value.
Long-term investors including Prudential, Mitsubishi UFJ Asset Management, Deka Investment, CaixaBank AM and Janus Henderson have taken positions in Sabadell in recent months.
They are attracted by the bank’s recurring dividends and improving profitability, according to market sources.
The investors are entering after major events, including BBVA’s failed takeover bid and Sabadell’s sale of its British subsidiary TSB, have passed.
Sabadell shares have risen 31% since the takeover bid ended and more than 23% so far this year, according to Expansión.
- Who
- Long-term investors, including Prudential, Mitsubishi UFJ Asset Management, Deka Investment, CaixaBank AM and Janus Henderson.
- What
- They have taken positions in Sabadell, replacing some investor profiles that were active in recent years.
- When
- In recent months, according to records cited by Expansión.
- Where
- Sabadell, a Spanish bank.
- Why
- The investors are drawn to recurring dividends and improving profitability, and believe the shares may have further room to rise.
Long-term investors
JPMorgan
Investment case
Long-term investors
They are attracted by Sabadell’s recurring dividends and plan to raise return on tangible equity to 16% by 2027.
JPMorgan
JPMorgan said Sabadell lacks scale and businesses that the market rewards.
Outlook
Long-term investors
Some long-term funds believe the share price still has room to rise after exceptional events have ended.
JPMorgan
JPMorgan expressed doubts about Sabadell’s future as a standalone bank concentrated in one geography.
Sabadell paid almost €2.5 billion in dividends, equivalent to 50 cents per share, after the sale of TSB.
David Martínez sold almost half of his stake in Sabadell.
Long-term funds including Prudential, Mitsubishi UFJ Asset Management, Deka Investment, CaixaBank AM and Janus Henderson took positions in the bank.
- New investors
- Prudential; Mitsubishi UFJ Asset Management; Deka Investment; CaixaBank AM; Janus Henderson
- Dividend payment
- Almost €2.5 billion, or 50 cents per share, paid in May
- Share-price change
- Up 31% since BBVA’s takeover bid ended
- Profitability target
- 16% return on tangible equity in 2027
What people are saying
lacks two elements this market rewards: scale and businesses