Shares of Shell PLC (SHEL) demonstrated solid gains on the London Stock Exchange, closing at 2,494.0 GBX on June 6, 2025, an increase of 0.61%. This upward movement signals renewed investor confidence, driven by the energy giant’s aggressive share repurchase program and strong recent financial performance.
The stock’s positive close builds on a period of short-term momentum, with shares gaining 1.61% over the last five days and 2.68% over the past month.
This recent strength provides a notable contrast to the company’s longer-term performance, as the stock remains down 9.18% over the last year.
However, investors are focusing on current strategic initiatives that bolster shareholder value. Central to this renewed optimism is Shell’s substantial share buyback program. On June 6 alone, the company purchased over 1.39 million shares for cancellation across multiple trading venues, a part of the $3.5 billion repurchase plan announced on May 2, 2025.
Such buybacks are often interpreted as a sign of management’s confidence in the company’s financial health and future prospects, as reducing the number of outstanding shares can boost earnings per share.
Underpinning this confidence are Shell’s solid first-quarter 2025 results, which exceeded market expectations. The company posted adjusted earnings of $5.6 billion, demonstrating resilience despite a complex global energy landscape. This strong financial performance has allowed Shell to maintain its commitment to shareholder returns, continuing a streak of significant quarterly buybacks.
Analyst sentiment reflects this positive outlook. A consensus of 19 analysts provides a median 12-month price target of 2,978.51 GBX, which represents a potential 20% increase from its recent price. The majority of analysts maintain a “Buy” or “Outperform” rating on the stock.
As Shell continues to execute its capital return strategy while navigating the energy transition, its recent stock performance and strong fundamentals have captured the market’s attention.
