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Royal Dutch Shell plc (RDSA.L)

LSE - LSE Delayed price. Currency in GBp
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1,872.20+29.40 (+1.60%)
At close: 04:45PM GMT
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  • j
    john
    Since December 15th were up about 20% Whether it's buy backs. Higher oil prices. RDS Has been a barn burner!
  • R
    Retired
    Can anyone explain why Shell, analysts and authors of articles continue to classify buy backs as a return to shareholders?

    A return to shareholders only occurs if TRS (Total Return to Shareholders) increases. TRS only includes dividends and stock price increase/decrease. Share buy backs do not improve dividends and history has shown that prior buy backs have not materially improved share price.

    In theory, share buy backs should improve share price but the history of Shell's share price does not correlate with the prior billions spent on buy backs. History has shown that share price correlates with crude prices, not buy backs.

    So, I find it misleading (at the very least) to claim that buy backs are a return of cash to shareholders.

    And, did not Shell state that the cash from the Permian sale would be used in part to buy back shares and in part as a direct payment to shareholders. Have they not now said that all of the sale proceeds will be used for buy backs? If so, is that not misleading?
  • F
    Felix
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  • Y
    Yahoo Finance Insights
    Royal Dutch Shell reached a 52 Week high at 51.26
  • J
    JWM
    Good thing about the share buyback is that 1. it establish solid bottom resistance. I have been holding other oil stocks, mainly OXY and volatility could flex your mental muscle, and a lot of people can't handle this stress. 2. The future dividend payout to remaining shareholders will be greater due to reduced # of shares 3. theoretically, reduced outstanding shares increases EPS which should increase the share price accordingly due to lower PER... So far RDS is being ignored by the market and not being valued compared to my expectation, but when the market finally returns to RDS, we could head to much higher share price. I notice that the institutional holding % has decreased significantly compared to the pre-covid level, probably because of the dividend cut betrayer. I was also #$%$ at this and almost threw away my phone when I woke up at 4 am in morning and saw a word "cut" but there is nothing we can about this. I know for the fact that RDS has the best FCF among oil majors and compared to any oil companies except Aramco. This should be priced above $55 now and $70 and beyond once the covid is gone because of the share reduction done during the covid time... I am going to wait patiently with this and with point 1 I really felt and observed RDS resisted from going down hard compared to other oil companies... So yeah I will continue to hold and collect "reduced" dividends until we finally see our glory.
  • P
    Professor
    Positive article in Barrons this morning. "Buying opportunity" Good read for shareholders of Shell.
  • S
    Shazam!
    "Shell will use the remaining $5.5 billion of the Permian sale proceeds to buy back stock ..."

    As best I can tell, the "macro" effect of a stock buy back has never improved the value of my "micro" investment in the stock.
  • M
    Mikey
    If a cup and handle is forming what do you think the ride up will go to? I was thinking close to $60.
  • H
    Hazel
    $50.. by Friday ?...
  • D
    Daniel
    I've been buying since March 2020. Forget buybacks. Bring back the dividends .90 per share and this thing will go to $60
  • R
    Retired
    It has been reported that Shell will spend 5.5 billion from the Permian sale on buy backs. In my view, this is a waste of our money and will help shareholders much less that if it were spent on acquisitions (crude/ng), developing lease assets or a special dividend. It mostly helps management by increasing performance/share and/or covering poor management decisions (including the "prices lower for longer" based strategies).
  • R
    Rob
    Next dip I’m going all in
  • j
    john
    This has been a really good run. I think in the next week we'll have a short term top. $52 Maybe $54. I have a sell order in at $54.18. Only selling 20% of my position. Have a great weekend all John
  • E
    Emil
    A close over 50 would be a very positive signal. I'm starting to belive the commodities supercyicle has begun
  • V
    Vo
    Finally a good close above 50.00. I am now more optimistic.
  • Z
    ZOR
    I need $56.03 to break even.
  • P
    Phil
    52 week high coming soon
  • h
    hk
    shell a buy at this point ?🤔
  • V
    Vo
    Someofyou know me since 30.00's . It was 2020 july i guess. From that day to today i am holding. Dont know where it can go. I just believe soon or later it will come back to 60's.. Until that day i wont be selling. It can go again 30 or 50 i am here
  • J
    John_E_Nitro
    Back above 50. Will this form a double top or a cup and handle?