Honda Motor Stock Sees Retail Buzz Explode 4,800% After Best Day In 16 Years: Here's What Is Driving Interest
By Stocktwits Inc | First Published Dec 24, 2024, 7:21 PM ISTHonda revealed plans to repurchase up to 1.1 trillion yen ($7 billion) in shares by the end of 2025 and also confirmed a merger with Nissan.
NYSE-listed shares of Honda Motor Co. surged 12.72% on Monday, marking their best intraday gain since Oct. 28, 2008, and continued to rise in Tuesday’s premarket trading.
The rally came after Honda announced a massive share repurchase plan and confirmed discussions for a business integration with Nissan Motor Co.
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Honda revealed plans to repurchase up to 1.1 trillion yen ($7 billion) in shares by the end of 2025, targeting a maximum of 24% of its outstanding shares between Jan. 6 and Dec. 23 next year.
Analysts quoted by Bloomberg noted the buyback aims to alleviate shareholder concerns about potential risks from a partnership with Nissan.
The announcement coincided with a memorandum of understanding between the two Japanese automakers to establish a joint holding company in 2026.
The integration preparatory committee aims to explore synergies and position the combined entity as a global mobility powerhouse with projected sales revenue exceeding 30 trillion yen and operating profit of more than 3 trillion yen.
On Stocktwits, message volume for Honda soared by 4,800% on Monday, with sentiment trending 'bullish' ahead of Tuesday’s open.
Some users viewed the move as a “rescue” of Nissan, while others expressed interest in finding an entry point for Honda shares, which are still down 30% from their March peak.
For Nissan, shares closed flat on Monday, but retail buzz surged by 1,500%, and sentiment also turned 'bullish' ahead of Tuesday’s session.
With Honda’s strategic buyback and plans for deeper collaboration with Nissan, the market is closely watching how these developments might reshape the automotive industry's competitive landscape.
Year to date, Honda’s U.S.-listed stock has lost over 12% while Nissan’s has shed more than 27%.
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