Indra plunged 11.51% on Wednesday in the stock market to 9.34 euros, after Corporación Financiera Alba announced its gradual exit from the company after selling 5% of the capital to SAPA. Following the announcement, Indra recorded its biggest fall on the stock market since March 2020. The March holding company sold this stake to the defence group for just over 90 million euros and will leave the company’s board in what has been one of its longest investments over time.
Until yesterday’s session, Indra had accumulated more than 50% of revaluation and after Wednesday’s fall it maintains a positive annual performance of 36%. The exit of Corporación Financiera Alba is accompanied by the entry of the Basque Defence group, which is also involved in Bain’s purchase of ITP, for which the fund is still looking for partners. Indra’s possible involvement in the operation has once again come up for discussion, as one of the government’s priorities is to maintain the Spanish roots of the aircraft engine company.
When the former executive chairman, Fernando Abril-Martorell, left the company last May following the government’s loss of confidence (of the Sociedad Estatal de Participaciones Industriales, SEPI, which has a 20% stake in Indra), the shares fell 12.68% in two stock market sessions. However, it has subsequently rebounded after implementing the new management model with a non-executive chairman (who comes from the Socialist Party of Catalonia) and two managing directors. The stock performance has also been driven by results that have consistently beaten market expectations and allowed a return to the dividend.
In fact, after falling 14.44%, to 7.04 euros, between 21 and 26 May, the company has touched 11 euros in several sessions and its current share price (9.35 euros) still represents a 32% rebound in six months. Meanwhile, analysts’ consensus continues to place the share at 11.8 euros as a target price, which leaves ample room for further upside.
