Construction companies launch up to R$759 million on the market in share buyback programs – Money Times

Real Estate Sector-Tegra
According to Ágora Investimentos, in a report sent to clients, the wave of repurchase programs sends a strong signal of confidence by companies in the commercial cycle (Image: REUTERS/Leonardo Benassatto)

The construction companies are on their toes when it comes to the share buyback program: six companies have already made use of this operation, among them even (EVENT3), Eztec (EZTC3), Tent (TREND3) and BR Properties (BRPR3), Besides the Dubeux Moorish (MDNE3), which has a program in place since April.

Altogether, these operations add up to R$759 million, considering the share price of the last closing. Companies set the repurchase parameter within 9-10% of the free float (except 5% Eztec), in a 6-month window allowed to remain open until February/2022 (except Tenda, which ends in December/21, and Moura Dubeux, in april/22).

According to Now Investments, in a report sent to clients, the wave of buyback programs sends a strong signal of companies’ confidence in the business cycle, despite the recent collapse of the market value of the sector.

“Form 358 in July had already hinted at this underlying mood, with real estate management and controllers buying a total of BRL 14 million of their respective companies’ shares (with the Tecnisa (TCSA3), MRV (MRVE3), brMalls (BRML3), Plan & Plan (PLPL3) and Eztec as the main buyers)”, complete analysts Bruno Mendonça and Wellington Lourenço.

On a weighted average, the shares of these builders have already fallen 26%. In the pair’s view, this drop is due to the recent collapse of the sector, which was driven by deteriorating macroeconomic conditions, “although corporate fundamentals remain predominantly robust”.

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