Vallourec Shares Bounce Over 4%, Boosted by Brent Crude Surge
The seamless tube specialist marks a strong rebound in the session, driven by the Brent crude surge amidst renewed tensions in the Middle East. The stock regains color after a significantly degraded month, as the company has just detailed its shareholder return policy for 2026.
A Rebound Tied to the Brent Surge of Over 5% in Session
Vallourec's stock rose 4.22% to €21.24, ranking among the top gains in the SBF 120, while the broader index fell by 2.23%. The movement follows the trajectory of Brent, which soared 5.7% to $76.09 a barrel after US strikes claimed against Iran and the Iranian announced retaliation on military facilities in Kuwait and Bahrain. The VIX also jumped by 20.3% to 18.73, reflecting a sharp increase in market stress.
However, the technical setup remains degraded after a challenging month. The price is significantly below its MM20 (€23.73) and MM50 (€24.32), with a gap of more than 12% on the latter, while it maintains a cushion of about 11% above its MM200 (€19.10). The RSI at 36 is just emerging from the oversold zone, consistent with a technical rebound after a monthly decline close to 13%.
Shareholder Return in 2026 and Coverage of Short Sellers
Vallourec confirmed today its intention to return approximately €650 million to its shareholders in 2026, through the completion of the share buyback program and the full exercise of subscription warrants, as detailed in today's announcement on shareholder return. This amount had already been mentioned during the Q1 2026 release (May 13, 2026), with quarterly revenue guidance ranging from $175 million to $205 million. At that time, the group cited tensions in the Middle East among its main risks, a factor that has become central again with the ongoing escalation. According to reviewed statements, the cumulative net short position on the stock has fallen to 0.95% of the capital, down from 8.76% a month ago.
This massive decline reflects a broad coverage of bearish bets, which can technically amplify rebound phases without prejudging the underlying trend. From the perspective of analyst opinions, CIC Market Solutions yesterday maintained its buy rating with a target of €28, representing a potential of about 32% on the current price. The technical support at €22.16, broken at the end of June, becomes the first marker to watch on the upside.
