Shell Stock Soars 3.18% on Share Buyback, Aphrodite Contract

Shell's stock price surged to its highest level since April 2025, with an intraday gain of 3.18%.

The strategy of buying SHEL shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 5-year CAGR of 4.25%. While the strategy captured some gains, especially in 2023, it also experienced significant volatility and underperformance in 2024 and 2025, highlighting the importance of market context and the need for a robust risk management framework. The recent performance in 2025, with a decline of 14.33%, suggests that this strategy may not be effective in all market conditions and requires careful consideration and potential adjustments based on economic and industry outlooks.

Shell plc's recent share repurchase program has been a significant driver of its stock price. On June 10, 2025, the company announced the purchase of 467,000 shares as part of its ongoing buyback initiative. This move is aimed at enhancing shareholder value by reducing the number of outstanding shares, which can potentially boost earnings per share and provide stability to the stock price.

Additionally, Shell's strategic decision to award a major subsea contract for its Aphrodite gas field has been well-received by investors. This contract is expected to significantly boost LNG exports from Trinidad and Tobago, further solidifying Shell's position in the energy market and contributing to the positive sentiment surrounding its stock.