Henkel Stock: Billion-Euro Buyback Program Announced

Henkel, the consumer goods conglomerate, has unveiled one of the largest share repurchase programs in its corporate history, amounting to up to one billion euros. The Düsseldorf-based DAX company plans to acquire its own preferred shares worth up to 800 million euros and ordinary shares worth 200 million euros, representing approximately 2.7 percent of its share capital at current market prices. The initiative is scheduled to begin in April 2025 and conclude by the end of March 2026. This announcement comes as Henkel's stock has shown impressive performance, gaining 1.3 percent in recent trading to reach 88.38 euros, marking its 52-week high. The stock has demonstrated a remarkable recovery of over 20 percent from its April 2024 low of 70.02 euros, significantly outperforming the broader market.

Strategic Outlook Remains Acquisition-Focused

Despite the substantial share buyback program, Henkel emphasizes that acquisitions in both business segments remain an integral part of its corporate strategy. The company has affirmed it will regularly update the market on the progress of the repurchase program through official channels and its website. Investors are now looking ahead to the company's upcoming quarterly results, scheduled for release on March 11, 2025. Analysts maintain an average price target of 88.79 euros for Henkel shares, suggesting slight upside potential. Additionally, market experts anticipate an increase in the dividend from 1.85 euros per share in 2023 to 1.99 euros for the current year, with projected earnings per share of 5.35 euros for 2024.