Today I will show you all the updates on theperformance of the shares of Monte dei Paschi di Sienapaying particular attention to the forecasts on the future of stocks. So what were the performance in 2022 and what should we expect for next year?
Here’s everything you need to know!
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Monte dei Paschi di Siena: what it does
Perhaps not everyone knows that the Monte dei Paschi di Siena it was founded way back in 1472. Originally, however, its name was Monte di Pietà. It currently represents the oldest and longest-lived bank active in the world.
A history full of tradition, of successes, but also of great scandals which have not, however, hindered Monte dei Paschi di Siena from being one of the major banking groups in Italy.
The company is largely active both nationally and internationally. It places traditional retail services and commercial banking at the center of its operations.
It has always been characterized by a considerable attention towards families and small and medium enterprises, keeping alive the reason for its institution: to help the most disadvantaged classes of the country in a particularly difficult local economic moment for the population.
Since June 1999, the share of Monte dei Paschi di Siena has been listed at Business Square.
The capitalization today is 2.33 billion euros.
Monte dei Paschi share performance and price
have some information that allow you to focus on the history of the company is also essential to know its stability over time and understand – with the necessary analyzes – whether it is better to invest or not.
Moving on to the practical side, here is the stock performance chart:
Monte dei Paschi Share Forecasts 2023: what to expect? Dividends and target price
Let us now dwell on some important aspects to understand whether or not it is convenient to invest in Monte dei Paschi di Siena shares.
Let’s see how it went 2021.
In 2020 the shares had suffered a decline, and a subsequent recovery, which however did not last long since the MPS shares have sunk again already at February 2021when the stock was suspended due to excessive downtrend, to then resume trading, however registering a crash of -2,03%.
A July 2021 MPS shares rallied by +4%thanks to the rumors relating to some moves by the Government concerning a strategic document for the agreement on a potential aggregation.
We now come to the year that has just ended.
The 2021 financial year closed with a Net income of 309.5 million euros.
A February 2022 there is a brilliant session to record, since the Sienese institute earned the 6,67%.
Surely Monte dei Paschi is currently grappling with a particularly complex graphic framework, so much so that its stock would appear to be about to fall again.
The MPS share chart is characterized by lows reached at €1 in 2020 and at the end of January 2021, but also by sudden upward accelerations.
At the end of June the CEO of MPS bank he was thinking of making a new capital increase, to push the bank’s revenues to 3.29 billion euros. In fact, without this capital increase, one could not hope for a rosy future for the Sienese institute.
During the first semester 2022the group Monte dei Paschi di Siena achieved a primary intermediation margin of 1.39 billion euro, an increase of 3.6% compared to the 1.34 billion obtained in the first six months of the previous year.
Net interest income amounted to 660 million euros, up 12.8% compared to 585.2 million in the first half of 2021.
Otherwisei total revenues they dropped to 1.52 billion euro, a decrease of 2.5% compared to the same period of the previous year, mainly due to the decrease in other revenues from financial management.
Al As at 30 June 2022, loans to the bank’s customers stood at 78.6 billion euros.
In October 2022, on the other hand, the rights to the capital increase of MPS collapsed on the Stock Exchange in the days of its debut on Piazza Affari
About the proposal for the saleon 17 October the procedures for capital increase for MPS. The main shareholder, the majority, to date is the State, through the Ministry of Economy. The capital increase, however, became necessary after the bank saw its value on the market decrease more and more over the years, going from 5 billion in 2017 to today’s 100 million.
Il November 4, 2022 Banca MPS communicated that the capital increase concerning 1,249,665,648 newly issued shares are fully subscribed, for a total value of approximately 2.5 billion euro.
Another interesting piece of news concerns the improvement of the rating of the company: the Fitch agency has in fact improved the bank’s rating by posting it from B to B+.
Il 2023 it started well: on 2 January Banca MPS recorded a brilliant sitting, with the best daily performance at MidCap. In fact, the stock gained 6.52% to 2.05 euros.
The doubts about the company’s continuity therefore seem to have been overcome, thanks to the capital increase and the implementation of part of the industrial plan to 2026.
The CEO also confirmed the advance of the objectives of the industrial plan, with the possibility of distributing the dividend on the basis of 2024 profits, instead of starting from 2025 as the initial idea.
Shares of the Sienese institute gained 11.7% to 2.218 euros, after fluctuating between a minimum of 1.981 euros and a maximum of 2.2975 euros, the January 9, 2023.
On February 8, 2023 Monte dei Paschi communicated the 2022 income statements: iThe interest margin amounted to 1.54 billion euros, up 26% compared to 1.22 billion in 2021, total revenues rose to 3.09 billion euros, up 3.6% compared to the previous year, while the net operating result fell by 9.2% to 571.2 million euros, compared to the 629.2 million recorded in 2021.
It is important to report the news according to which Moody’s improved the company’s capital strength ratings by two notches, portando il rating standalone Baseline Credit Assessment a “b1” da “b3”, il long-term deposit rating a “Ba2” da “B1”, e il subordinated debt rating a “B2” da “Caa1”.
At the end of February 2023 AXA announced that it has completed the sale of 100 million shares of Monte dei Paschi di Siena, which were sold at a unit price of 2.33 euros. AXA thus falls to 0.0007% of the capital of Monte dei Paschi di Siena.
Changes have been made to the FTSEMibsince on 20 March Monte dei Paschi di Siena entered the main basket of Piazza Affari, replacing The only buzzerwhich will drop at MidCap.
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Monte dei Paschi di Siena: the Target Price
According to analysts the target price of Monte dei Paschi di Siena has been identified at an altitude 2,03 euro, with a maximum price of 3 euros and a minimum of 0.30 euros.
The technical analysis conducted by the experts reveals a potential upward trend in the short term and a downward trend in the medium and long term. The judgment of the analysts is therefore hold and underperform.
Monte dei Paschi di Siena: dividends
Another useful figure is dividends.
The bad news is that there is currently no data on i dividends, as the stop was confirmed.
The new news following the capital increase seems to be directed towards a new distribution of dividends starting from 2025, which could be brought forward to 2024 as we saw earlier.
Is it worth investing in the shares of Monte dei Paschi di Siena?
Now that you have all the information you need to make a decision, let’s see where to date it pays to invest in MPS shares.
My advice is to never buy a single stock. This operation has a very high risk rate if it is not part of a diversified strategy.
If, on the other hand, you have never invested in shares and you are at the beginning of your research, take a look at the guide to start investing in stocks.
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It is a review that proposes the most profitable shares of our country in which to invest. The Studies and Research Center of Affari Miei constantly examines and monitors the proposed actions, so as to suggest the most interesting ones.
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Where to buy Monte dei Paschi di Siena shares?
If you want to buy shares but you don’t know practically how to do it, I’ll explain which are the two channels you can use:
- The traditional bank. Based on my experience, if you want to invest more than 3-4 thousand euros, your checking account should actually be fine. The most important Italian banks on average allow you to have a securities portfolio. The problem is that operations often have a high online cost, so you have to evaluate case by case if it’s convenient for you;
If you want to discover the best online platforms to invest independently, read the dedicated guide.
Additional helpful resources
We have briefly seen the history of the Monte dei Paschi di Siena sharesand what could be the forecast for 2023.
Remember to always invest only the figures that you can afford to lose, but above all that they never exceed 2-3% of the money you want to invest.
Also remember that the diversification and prudence are indispensable in a sector that has risk as its constant. You know that my position is adamant on this aspect: take risks yes, but with intelligence.
In the meantime, here are some guides that might interest you:
Finally, you will also find some guides dedicated to those who need a refresher before starting to invest:
See you soon!
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