For a week, Zara – the main brand of the Spanish textile group Inditex – made headlines around the world. The reason for this was the sensational collaboration with singer Bad Bunny at the Super Bowl. After all, the Puerto Rican artist became the “most impactful pop star” in the history of the sporting event.
The question arose to what extent this influence was valued by investors and the market. A small spoiler: Despite initial skepticism, the collaboration was well received.
January 6th serves as the starting point for this analysis of the stock market development of Inditex shares. On this day the course reached a new milestone. It broke the 57 euro mark for the first time and reached a new all-time high of 57.18 euros. This mark was exceeded again the following day when the price rose to 57.74 euros.
It seemed as if the Spanish fashion giant’s shares were reaching new highs day after day. However, this bubble burst after the latest valuation by the US investment bank Morgan Stanley, which was announced on January 14th. On that day, Inditex shares closed at 56.26 euros, down 1.51 percent.
The decline that day was not just temporary. It initiated a downward trend that bottomed out on January 29, when Inditex shares fell to 53.82 euros per share. However, they recovered from this value in just 15 days and reached new highs.
New all-time high: Inditex reaches 58 euros per share
A key turning point was the significant upward momentum in Inditex shares on February 4th. On that day, the Spanish fashion group’s shares rose by 3.36 percent. The price climbed from 54.76 euros the day before to 56.60 euros per share.
This remarkable increase in value occurred on the same day that Inditex informed the Spanish stock market regulator Comisión Nacional del Mercado de Valores (CNMV) about the start of a new share buyback program with a volume of up to 180 million euros after the market closed.
Following the release of this news, Inditex shares shot to new all-time highs the following day, February 5th. They reached a value of 58.14 euros per share. However, the price quickly recovered and closed the day at 56.70 euros. That was only an increase of 0.18 percent compared to the closing price of 56.60 euros on February 4th.
New rise to highs: The “Bad Bunny Effect”
Apart from this “collateral high” of 58.14 euros on February 5th, Inditex shares hit a low point following the announcement of the buyback program the previous week. On February 6, the shares fell to 55.68 euros, but closed the day with an increase of 0.78 percent at 57.14 euros. This meant that they reached a closing price above 57 euros again, which had not been the case since January 13th. At that time it was 57.12 euros.
On this basis, the trading week for Inditex shares began, which was characterized by the “bad bunny effect” in the media and economically. At first it seemed as if this influence was not reflected in the share price. The share opened on Monday at 57.08 euros and then fell to 56.54 euros. At the end of the day, however, it closed with an increase of 0.49 percent at 57.42 euros.
From this value, a new increase to new highs began. On February 10th the price rose to 57.90 euros. After some fluctuations, it rose by 0.81 percent on February 12th and closed at 57.46 euros.
A look at the overall performance of Inditex shares this week shows that their value increased by 0.56 percent – from 57.14 euros on February 6th to 57.46 euros last Thursday. This percentage may seem small, but it secures Inditex’s recent sustainable highs. With the exception of February 10, when the shares closed at 56.94 euros, the price has remained consistently above 57 euros at the close of trading since last Friday.
Almost 200,000 shares bought back
In addition to the share prices, Inditex has published an update on the share buyback program announced on February 4th. The group announced the acquisition of almost 200,000 shares. These shares were acquired on February 5th and 6th at prices between 55.78 euros and 57.92 euros per share.
Specifically, according to a statement, the company acquired a total of 199,000 shares on the market as part of the buyback program announced. On February 5th, 107,000 shares were purchased. Of these, 72,194 buy orders were executed on the Madrid Stock Exchange at a weighted average price of 56.85 euros. The remaining 34,806 shares were purchased on Euronext at a weighted average price of EUR 56.81. On February 6, 92,000 shares were acquired, 60,130 of them on the Madrid Stock Exchange at an average price of 56.59 euros and 31,870 on Euronext at a weighted average price of 56.52 euros.
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