Mercedes-Benz Group AG is facing a challenging period as its stock price continues to decline, raising concerns among investors and analysts alike. As of March 27, 2025, the stock is trading at 58.33 Euro, reflecting a decrease of 1.95 percent from the previous day's closing price. This decline is part of a broader trend, with the stock experiencing a significant year-on-year loss of over 20 percent, despite a year-to-date increase of 10.04 percent.
Jefferies, a prominent financial services company, has recently raised its price target for the automaker to 65 Euro while maintaining a 'Hold' rating. This cautious outlook highlights the uncertainties surrounding the company's future performance. Currently, the stock is nearly 24 percent below its 52-week high of 76.70 Euro, which was reached in early April 2024.
Analysts have projected earnings of 8.69 Euro per share for the fiscal year 2025. However, market observers expect a dividend payout of only 3.80 Euro per share, a noticeable decrease from the previous year's dividend of 4.30 Euro. This anticipated reduction in dividends suggests a more conservative financial strategy from the company.
The upcoming annual general meeting, scheduled for May 7, 2025, is expected to provide further insights into the company's strategy and financial direction. Investors are particularly keen on the quarterly figures set to be released on April 30, 2025, which will offer crucial information regarding the current business development of the automaker.
Technical indicators present a mixed picture. On March 25, 2025, the stock briefly crossed the 50-day moving average at 59.60 Euro, a generally positive sign. However, it is currently trading about 1 percent below this average, indicating a lack of momentum. The trading volume has also been underwhelming, suggesting subdued market interest.
Investors are left wondering whether this is a moment to buy or sell. A recent analysis from March 27 has highlighted the urgent need for action among Mercedes-Benz shareholders, prompting many to reconsider their positions. The question remains: Is it time to invest in the struggling automaker, or should shareholders look for more stable opportunities?
Looking back, the performance of Mercedes-Benz stock over the past year has been less than favorable. On March 26, 2024, the stock closed at 73.45 Euro on the XETRA exchange. An investment of 10,000 Euro at that time would now be worth only 8,066.71 Euro, representing a negative performance of 19.33 percent. The current market capitalization of the Mercedes-Benz Group stands at 56.47 billion Euro, reflecting the challenges it faces in the competitive automotive landscape.
As of March 26, 2025, the stock price had dipped further to 58.95 Euro, marking a 0.5 percent decrease. The stock has fluctuated significantly over the past year, with a 52-week high of 77.45 Euro recorded on April 9, 2024, and a low of 50.75 Euro reached on November 13, 2024. Currently, the stock is trading 16.16 percent above its 52-week low, but still significantly below its peak.
In the most recent quarterly report, released on February 20, 2025, the company reported earnings of 2.57 Euro per share for the quarter ending December 31, 2024. This was a decline from the previous year's earnings of 2.99 Euro per share. Revenue for that quarter was reported at 38.45 billion Euro, down 4.50 percent from 40.26 billion Euro in the same quarter the previous year.
As the Mercedes-Benz Group navigates these turbulent waters, investors are looking for signs of recovery. The upcoming Q1 2025 earnings report, due on April 30, will be closely watched for indications of how the company is adjusting to current market conditions and consumer demands.
In summary, the landscape for Mercedes-Benz Group AG is fraught with challenges, and the upcoming months will be critical in determining its path forward. With a cautious outlook from analysts and anticipated changes in dividends, shareholders must weigh their options carefully. Will the company rebound, or is it time for investors to rethink their strategies?
