NatWest Group Shares Soar 1.49% to Record High on $1.55 Billion Note Issuance

NatWest Group (NWG) shares surged to a record high today, with an intraday gain of 1.49%.

The strategy of buying NWG shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and steady, if modest, gains.

Maximum Drawdown: The maximum drawdown during this period was -15.8% in May 2023, which occurred after NWG's stock price peaked in early 2023. This indicates that the strategy can withstand market downturns but with significant losses.

Annualized Returns: The annualized return for this strategy was approximately 2.5% over the past 5 years. While this is a modest return, it demonstrates the strategy's ability to generate consistent, if unspectacular, gains.

Comparison with Market Performance: The strategy's returns slightly underperformed the market, as evidenced by the comparison with the SPY ETF, which provided a higher annualized return of around 3.5% over the same period. This suggests that while NWG offered some stability, it may not have provided the best risk-adjusted returns in comparison to a broader market index.

Volatility: The strategy's beta was approximately 1.2, indicating that it experienced slightly higher volatility than the market, which is consistent with the strategy's focus on NWG's recent highs.

In conclusion, the strategy of buying NWG shares after they reached a recent high and holding for 1 week provided some stability and consistent returns over the past 5 years, although the returns were modest and the strategy underperformed the market. It's important to note that this strategy may be suitable for investors seeking stability, but it may not be the best choice for those looking to maximize returns.

On May 23, 2025, NatWest Group announced the issuance of $1.55 billion in senior callable notes. This move can significantly influence investor perceptions and stock performance, as it provides the company with additional financial flexibility and stability.

NatWest Group has demonstrated strong market performance, reaching a new 12-month high. This achievement is indicative of the company's robust financial health and investor confidence. The stock has shown significant growth, with a year-to-date increase and a one-year increase, reflecting positive market sentiment and strong earnings prospects.

The company is expected to see earnings growth of 13.33% in the coming year. This anticipated growth is likely to contribute to positive investor sentiment and further stock price appreciation, as investors anticipate higher returns on their investments.