SABESP Soars 24.79% on Buyback, Buy Signal

SABESP(SBS) rose to its highest level since April 2013 today, with an intraday gain of 0.52%.

The strategy of buying SBS shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 4.46% annualized return. The maximum drawdown of 6.64% occurred in 2024, reflecting the impact of market volatility on the strategy. Overall, the strategy provided modest performance, making it suitable for investors seeking stability rather than high returns.

SABESP's stock price has been influenced by several key factors recently. On May 12, 2025, the company announced a share buyback plan to acquire up to 6,904,170 shares. This initiative aims to fulfill incentive plans and maintain the capital structure, which can increase demand for the shares and boost investor confidence.

Additionally, Wexford Capital LP significantly increased its holdings in SABESP, raising its position by 57.0%. This substantial investment indicates strong confidence in the company's future prospects, which can positively impact investor sentiment and the stock price.

Furthermore, a buy signal issued on April 8, 2025, has led to a 24.79% rise in SABESP's stock. The forecast suggests further potential for growth, which can attract more investors and positively influence the stock price.

SABESP has also outperformed the utilities sector, delivering a 43.2% return year-to-date. This strong performance relative to its peers can enhance investor perception and contribute to a positive change in the stock price.