Investor AB (INVE_A) share price has been in a remarkable rally this year, pushing it to its highest point on record. It has risen in the past four straight months, making it one of the best-performing Swedish companies. Its market cap has surged to over $72 billion, making it the second-biggest company in Sweden after Atlas Copco.
They own EuropeInvestor AB is one of the biggest European companies yet most people don’t know who they are or what they do. The company was started by the Wallenberg family, one of the wealthiest clans in Europe with assets worth over $275 billion.
Investor AB is made up of three key areas: private stakes, public stakes, and its investments in EQT. Its public stakes is made up of some of the biggest companies in Europe, including Atlas Copco, ABB, AstraZeneca, SEB, and Ericsson. All these companies have a major market share in their respective industries.
Investor AB’s private stakes are part of its Patricia Holdings and include companies like Laborie, Vectura, and Permobil, among others. These companies are not well-known but they have a substantial market share in their industries.
Investor AB also owns other companies indirectly. For example, it owns a big stake in EQT, the fifth-biggest Swedish company. It has over 225 billion euros in total assets under management (AUM). EQT owns hundreds of companies mostly from Europe.
Therefore, investing in Investor Group is a bet in hundreds of companies in different sectors. This is evidenced by its long history of shareholder returns and revenue growth. The company’s most recent results showed that its Net Asset Value (NAV) jumped from SEK 673 billion in 2022 to over SEK 818 billion.
Investor AB makes money in a number of ways. It benefits directly when shares of its portfolio group of companies rise. It also receives payments or dividends from these companies. In 2023, the company received over 11.8 billion in dividends from its portfolio company.
Investor AB share price forecast
The monthly chart above shows that Investor AB has been an all-weather company that has done well over the years. Like other companies, it has had its down moments, as we saw during the Global Financial Crisis (GFC) and the Covid-19 pandemic. It has bounced back from all these dips.
And most recently, the stock has crossed the key resistance point at SEK 230.8, its previous highest point on record. By moving above that price, Investor AB invalidated the double-top pattern that has been forming. In price action analysis, this is one of the most dangerous patterns.
Investor AB remains solidly above all moving averages, signaling that bulls are in control. Therefore, the long-term outlook for the company is bullish, with the next important level to watch being the psychological point at SEK 300.
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