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Bernard Arnault<\/strong> wants to strengthen the position of his family within the luxury group he leads. According to statements made to the Autorit\u00e9 des march\u00e9s financiers, the LVMH<\/strong> boss bought 335,322 shares<\/strong> in the group between January 27 and February 28 at prices ranging from 788 to 823 euros<\/strong>. These shares were acquired through the companies Christian Dior<\/strong>, 97.5% controlled by the Arnault family, and Financi\u00e8re Agache<\/strong>, the parent company of Christian Dior.<\/p>\n <\/p>\n In December 2022, the Arnault family already owned 48.18% of LVMH shares<\/strong>, compared with 47.83% in 2021. Also in December 2022, it held 63.90% of the voting rights<\/strong>, a slight increase compared to the end of 2021.<\/p>\n <\/p>\n The total number of shareholders in the company is estimated to be close to 300,000<\/strong>. Among them, the share of foreign institutional investors is estimated at 38.7% of the company’s shares<\/strong>, while French institutional investors hold 7.8%<\/strong>. LVMH employees own less than 0.5% of the shares.<\/strong><\/p>\n <\/p>\n <\/p>\n In terms of stock market attractiveness, LVMH stock has received a score of 5.3 out of 10<\/strong> from Equity GPS<\/strong>, a system that re-evaluates stock valuations every day. The luxury group has a valuation ratio score of 1.4 out of 10<\/strong> and an earnings outlook score of 9.1 out of 10.<\/strong><\/p>\n <\/p>\n Similarly, analysts at Factset<\/strong>, a multinational financial data management company, have positive recommendations with an average price target of 880 euros<\/strong>. Of the thirty-one financial analysts referenced, twenty-six are positive, five are “hold”. Among them, Thierry Cota of Soci\u00e9t\u00e9 G\u00e9n\u00e9rale is the most optimistic and targets a price of 920 euros<\/strong>. Graham Renwick of Berenberg, more reserved, believes that the share price should be around 710 euros.<\/strong><\/p>\n <\/p>\n The share price has risen by 29%<\/strong> in one year, 115%<\/strong> in three years, 232%<\/strong> in five years and 516%<\/strong> in ten years (excluding dividends).<\/p>\n <\/p>\n <\/p>\n Five days ago, the group had announced its new share buyback program, to be carried out between March 1 and July 20, 2023.<\/p>\n <\/p>\n “As part of its share buyback program, LVMH Mo\u00ebt Hennessy Louis Vuitton S.E. (LVMH) has today entrusted an investment services provider with a mandate to acquire its own shares for a maximum amount of one billion five hundred million euros”<\/em>, the group explained in a statement.<\/p>\n <\/p>\n However, it is important to differentiate between the two share buybacks. In the context of the buyback by LVMH, the French luxury group wishes to cancel these shares<\/strong>. The goal is easily identifiable: this operation is often win-win for the company and its shareholders, since it mechanically increases the company’s earnings per share (EPS)<\/strong>. Also, the announcement of these buyback programs is well received by the markets, because companies often offer shareholders a buyback price higher than the last closing price of the share.<\/strong><\/p>\n <\/p>\n In this case, it is a personal initiative of Bernard Arnault, and no cancellation has been specified. The shares will therefore be directly attached to the capital of the Arnault family, a way to secure the place of its members and to prepare the succession of the 74 year old billionaire.<\/p>\n <\/p>\n Read also >Donation of a painting by Caillebotte : what benefit for LVMH ?<\/a><\/p>\nPositive estimates<\/h2>\n
Different share buyback strategy<\/h2>\n