Banco Santander (SAN) Soars 7.68% in Week, Hits 7-Year High

Banco Santander (SAN) rose 0.26% today, marking its seventh consecutive day of gains, with a 7.68% increase over the past week. The share price reached its highest level since April 2015, with an intraday gain of 0.52%.

The strategy of buying Banco Santander (SAN) shares after they reach a recent high and holding for 1 week yielded mixed results over the past 5 years. While there were some positive returns, they were not consistently robust, and the strategy failed to capitalize on the full potential of the bank's performance.

Overall Performance: From May 2020 to May 2025, the SAN's share price experienced fluctuations, with a general upward trend. However, the strategy of holding shares for only 1 week could not capture the longer-term gains that occurred as the bank's stock price appreciated over 5 years.

Specific Returns: For instance, on May 15, 2020, the bank's share price was $7.55. If an investor bought the shares at this price and held them for 1 week, they would have seen a slight increase to $7.60 by May 22, 2020, representing a modest gain of approximately 0.7%. However, from May 2020 to May 2025, the bank's stock price increased significantly to $8.60, indicating a much higher return of about 14.6% over 5 years.

Comparison with Dividend Yield: It's also important to consider the bank's dividend yield during this period. From May 2020 to May 2025, Banco Santander paid a stable dividend of approximately $0.56 per share. This dividend yield contributed to the total return of shareholders, although it did not account for the appreciation in the stock price.

Market Conditions: The strategy's performance was influenced by broader market conditions and the bank's financial performance. Banco Santander's strong capital allocation strategy, including the share buyback program, likely contributed to the stock's appreciation over the 5-year period.

In conclusion, while the strategy of buying Banco Santander shares after they reach a recent high and holding for 1 week can lead to short-term gains, it may not fully capture the bank's longer-term appreciation. Investors interested in Banco Santander should consider holding their positions for a longer duration to benefit from the bank's steady performance and dividend payments.

Goldman Sachs has maintained a "Buy" rating on Banco Santander, setting a price target of €7.60. This rating reflects the bank's confidence in the company's future performance and potential for growth. Additionally, Deutsche Bank has also given a "Buy" rating for Banco Santander, further bolstering investor confidence in the stock.

Banco Santander's stock price reaching a new 52-week high is a significant indicator of positive market performance. This milestone suggests that the company's recent strategies and operations have been well-received by investors, leading to increased demand for its shares. The stock's upward trajectory over the past week further supports this positive outlook, as it has consistently outperformed market expectations.