Vestas CEO buys 10,000 Vestas shares after Trump victory

Aarhus, Denmark - After the US elections, green stocks from the USA are the first to fall. US investors' concerns about tariffs on solar products from China and latent worries about a reversal of direction from renewable to fossil fuels in the US are high following the election of Donald Trump.

In the wake of this uncertainty, other green stocks outside the USA are also coming under pressure. This can be seen in the performance of the global share index RENIXX (Renewable Energy Industrial) Index, which has slipped below the 1,000-point mark.

The shares of Danish wind turbine manufacturer Vestas also came under heavy selling pressure. Since the beginning of November 2024, the Vestas share has slumped from 18 euros to its current price of EUR 13.20 Euros. That is a fall of 26 per cent.

While investors are selling Vestas shares, insiders can be found on the buy side. Henrik Andersen, CEO of Vestas, bought a total of 10,000 Vestas shares at a unit price of DKK 106.55 (EUR 14.28) following a Vestas mandatory publication on 7 November 2024. The purchase volume then totalled around 143,000 Euros.

Analysts are presenting a mixed picture for the Vestas share, with extremely divergent price targets in some cases. The US investment bank Goldman Sachs has reduced the Vestas price target from DKK 259 to DKK 236 (EUR 31.64), but the rating remains ‘buy’. The Canadian bank RBC has lowered the Vestas price target to DKK 156 (EUR 20.91), but left the rating at ‘outperform’. Deutsche Bank Research also sees the Vestas share at this level with a target price of DKK 150 (EUR 20.11).

While RBC, Goldman Sachs and Deutsche Bank Research are well above the current price of the Vestas share (EUR 13.22) with their share price estimates, the British investment bank Barclays has a much more pessimistic assessment. Barclays has lowered the Vestas price target from DKK 99 to DKK 80 (EUR 10.72). The difference in the analysts' assessment of Barclays (EUR 10.72) compared to Goldman Sachs (EUR 31.64) is thus an astonishing 67 per cent.

Source: IWR Online, Nov 11 2024