Grifols shares opened lower on Monday, slipping more than 10 percent as traders returned to the markets after last Friday’s rebound of 18.35 percent. The stock extended its decline early in the session, moving down roughly 10.5 percent, amid ongoing volatility. After a steep drop the previous Thursday following the company results, the stock briefly retraced some losses only to resume the downward move as investors weighed the latest performance data and market sentiment. Short sellers have been active again, targeting the stock and contributing to the selling pressure that has marked recent trading sessions.
This activity was disclosed through filings to the National Securities Market Commission, which showed a short position held by Millennium International Management LP on February 29. The position accounted for about 0.5 percent of Grifols’ capital, continuing a pattern of opportunistic bets observed in recent weeks. The same date also revealed a short stake held by Qube Research & Technologies Ltd, another familiar operator in this market scene, amounting to about 1.62 percent of the company’s capital. Earlier entries disclosed by the same funds included positions of 0.5 percent on January 29 and subsequent increases in late February, with notable bets in the 1.29 to 1.30 percent range during February on Grifols’ capital base.
The company responded to the market volatility by issuing a string of timely disclosures to the CNMV, delivering up to three press statements in under five hours in an effort to calm investors. Those filings helped sustain the price above a key level for much of the session, ending the day with modest gains after the tumult. Among the items clarified were the progress of a due diligence review by Haier that reached a favorable conclusion, accelerating the plan to divest the Chinese subsidiary, and questions surrounding a 266 million euro payment from the parent company to Scranton, which analysts have been scrutinizing. The firm also outlined the cash flow that will be reflected in 2024, helping to address questions about liquidity and financing needs.
In governance news, the company announced a leadership transition that mirrors broader governance best practices. The chief executive and director Thomas Glanzmann will transition to a non-executive president role starting in 2025. He noted that the move aligns with good governance standards and that Nacho Abia will take over as chief executive on April 1. The leadership shift is paired with a commitment to ongoing governance improvements, including simplification of corporate structures and a pledge not to engage in new related-party transactions, a response to concerns raised by market researchers and analysts about past relationships with related entities.
The company also highlighted its financial performance for the prior year, reporting a net profit of 59.3 million euros in 2023, a drop of 71.5 percent from the 208.3 million euros earned the year before. Revenue did, however, reach a record high of 6.592 billion euros, up 8.7 percent year over year, underscoring a complex earnings picture where top-line growth coexists with margin pressures and one-time items that affected net income.
Overall, Grifols faces a period of adjustment as it navigates a volatile market environment, leadership changes, and a broader investor debate about the sustainability of its earnings trajectory. Market participants will be watching closely how governance reforms unfold, how the company executes its strategic plans in China and beyond, and how cash flow and profitability converge in the coming quarters. The evolving short-seller activity will also remain a focal point for traders looking for directional cues as the stock tests critical support and resistance levels in the near term. Here is a concise summary from the recent CNMV disclosures and company communications, attributed to the relevant market authorities and the Grifols investor relations team. [Source: CNMV filings and company statements]”}{