Despite a buyback program of 15 million dollars, Hoegh Autoliners' share shows no reaction. Market ignorance and chart weakness are weighing on the stock.
Hoegh Autoliners announced the start of a share buyback program yesterday. Starting today, shares worth up to 15 million US dollars are to be bought back over a period of three weeks. However, the hoped-for initial spark on the market failed to materialize: The share price was unimpressed yesterday.
The big yawn on the market
Share buybacks are normally seen as a signal of strength. The management is signaling this: We think our share is cheap. But at Hoegh Autoliners this effect fizzles out. The details of the program:
Volume: Up to 15 million US dollars
Term: April 22 to May 13, 2025
Settlement: Through Arctic Securities ASA
Rationale: Optimization of the capital structure
Despite this announcement, there was hardly any movement in the share price yesterday. The market seems to have ignored the signal.
Why is the buyback not taking off?
Why are investors so reluctant? Several factors play a role. The volume of 15 million dollars seems low in view of the market capitalization. There is also a lack of positive operating news that could boost the share price. The general uncertainty in the transportation sector is an additional burden.
Red alert on the chart?
The chart technology is also sending warning signals. The share is clearly in correction mode. Important indicators are pointing downwards:
The share price is trading below key moving averages.
The important 20-day line has already been breached.
An attempt at a countermovement failed last week.
The trading volume shows waning buying interest
