The stock market value of ForFarmers has risen sharply to the highest level in almost four years after the publication of the excellent annual figures for 2024. This while the sentiment on the stock market has not been all that positive in recent weeks. Where does this revival come from?
The closing price of ForFarmers, listed on Euronext in Amsterdam, rose to €4,855 per share on Tuesday. The last time this value was on the boards was in the summer of 2021. In recent years, the stock market value of the animal feed company has mainly gone downhill, as a result of disappointing figures.
However, recovery has started in mid-2024 and since the publication of the annual figures At the end of February, there was a rally. In one month, the value increased by 35%. This while the Smallcap index increased by only 5% in that period. This makes the increase even more striking and can therefore be directly attributed to the better results. The total sales volume of ForFarmers increased by no less than 7% last year to 9 million tonnes. The company is also doing better financially, partly due to implemented cutbacks. Various investment banks recently put the share back on the buy list and increased the price target.
Acquisitions in the pipeline
In addition to the annual figures, the new strategy up to 2030 probably in the taste of investors. The feed company is explicitly focusing on further growth through acquisitions, but does not want to take any more steps outside Europe as was the ambition in the past. Also the dividend is attractive at €0,20 per share, because the company has a relatively high dividend yield. The farmer members saw their back payment double last year.