One of the newest news that this December is bringing us is that the electricity company Endesa is about to reach the figure of free rise. It is one of the most favorable movements for the trend of securities listed on equity markets. All this, in a month that is being very unfavorable for the interests of small and medium investors. With a good part of the values of the national stock index in negative positions, even in some values with two-digit depreciation. Without for the moment there is news of the long-awaited christmas party rally which has not yet appeared.
With a context in which the Spanish stock market is being very hurt by losing this year by just over 13%. While on the contrary, Endesa has appreciated in this period in more than 10%. Quite a contrast that many small and medium investors have noticed. With which, the buying pressure is clearly being imposed on the seller. With prospects that the increases could be accumulating towards the end of the year. This is the reality at this precise moment and waiting for the last days in the equity markets.
Another aspect that must be taken into account from now on is that Endesa shareholders will receive on January 2, 2019 a dividend with a profitability very close to 7%. This explains why there are very few sales in the electricity company owned by the Italian Enel. This can be a powerful signal that the buying positions will be able to continue during the last days of this year that is about to end. Although at the moment, the outlook is clearly positive for the interests of small and medium investors who have taken positions in this listed company.
Endesa very close to 21 euros
At the moment the shares of the Spanish electricity company are close to 21 euros per share and clearly under a trend bullish on all timeframes: short, medium and long. When your resistance level to enter the uptrend is at 20,90 euros. In other words, it is about to achieve this objective and that could happen at any time based on the evolution of Endesa's price. A level that therefore all investors are very pending with the intention of forming part of this part of the shareholding.
It cannot be forgotten that the important free rise figure means that already no resistors in front. This in practice means that you can go as far as you want as there are no limits on these movements in the equity markets. Beyond other technical considerations and maybe also from a fundamental point of view. In any case, it will be a very important step for the entry of new shareholders to be exercised in this value integrated into the selective index of the Spanish stock market, the Ibex 35.
MS revises its value upwards
Another of the relevant news this week is that which refers to Morgan Stanley raising the price of Endesa. To the extent that they have put the target price in the 21 euros per share from the current 20,2 euros. This implies a potential revaluation very close to 3,5% from their current prices. Another good news for small and medium investors who are currently invested in the value. Not surprisingly, they have great hope that it can have another good pull to the upside.
On the other hand, the price that Morgan Stanley gives it is very close to that of the consensus of analysts, who place its valuation at 21,03 euros, with a potential of 3,65% and recommendation to keep. In this sense, we cannot forget that Endesa, according to the latest quarterly results, earned close to 1.200 million euros in the first nine months of this year. That is, with an increase of 10% more than between January and September of last year. In particular, derived from the performance of the liberalized market.
First-of-another dividends
Regarding another subject of undoubted interest such as the distribution of dividends among the shareholders of this important electricity company. Where you will distribute a remuneration close to 7%, as we said earlier in this article. Well, this will counteract possible outflows of the value of the Ibex 35. Once its price is at the threshold of 21 euros per share. This shareholder remuneration will be effective on January 2, when it will go to the investors' savings account.
This in practice means that it will be discounted from your listing price. However, it is usual that after a few trading sessions recover the initial price level so in principle it is a very profitable operation for small and medium investors. Where they can form a portfolio of fixed income within the variable. With a fixed and guaranteed payment every year whatever happens in the financial markets. As one of the main added values of the action.
Good time for the electrics
In any case, Endesa's good performance on the stock market is accompanied by the excellent moment that electricity companies are going through in our country. Almost all of them start from a very similar situation since they are in a situation, or at least very close to achieving it, of the free rise. For example, Iberdrola, Enagás or Red Eléctrica Española and this also helps them to be revalued from now on. Beyond other considerations of a technical nature and maybe even from the fundamental point of view.
Within this general scenario, it is not surprising that Endesa shares have a wide upward trajectory over the next few weeks or even months. Therefore, it will be one of the values of Spanish equities that will have to be watch very closely in this days. In addition, you cannot forget that it acts as a safe haven in the most difficult moments for financial markets. In a year that of course has not been very positive for the national team and it will be better to forget his bad results before.
Good reception to the reduction
On the other hand, investors have welcomed the news that Endesa will reduce its dividends as of 2021. Or rather, just will allocate 80% of its profits to this remuneration and that has been understood by the financial markets as a desire of the company to increase its presence in the sector in the coming years. This should translate into a revaluation of its valuation on the stock market. Although, of course, very high appreciations are not expected after the good year it has had this year that is about to end.
It is also necessary to assess that it is a listed company with great stability in the conformation of its prices. Namely, does not show very high volatility nor is there a wide difference between their maximum and minimum prices in the same trading session. This is a factor that is highly valued by a very well-defined investor profile. Where security prevails over the profitability that you can obtain in the financial markets. Intended for the most defensive or preserved savers in the markets and for a medium to long term.
Finally, it must be clarified that at this time taking positions in the value produces more positive than negative effects. Precisely because of the entry into a process of special importance such as free upload. Where there is more that can be gained than lost and this is known by some small and medium investors who are deciding to enter the value. In some cases, through very aggressive operations to make profitable their savings from these precise moments. Beyond that they can be generated a series of fixes from now on. Something that on the other hand is normal and to a certain point logical and healthy for its subsequent evolution in the equity markets.
In any case, reality indicates that Endesa is one of the national equity securities with the best technical aspect at the moment. With a greater opportunity to buy than to hold, at least in the shortest term. Although it is not aimed at trading operations due to the special characteristics that this electrical value presents. He's on the list of many financial intermediaries, especially after this past summer. Where their conditions have changed substantially and a good proof of this is the improvement that Morgan Stanley has just made. Raising its target price, something that has done the value very well in these trading sessions of the week. Something that on the other hand is normal and to a certain point logical and healthy for its subsequent evolution in the equity markets.