flatexDEGIRO Shares (FTK) Hit New High: Can The Breakout Hold?

flatexDEGIRO AG shares (ETR: FTK) have shattered previous records, reaching an all-time high of €27.06 to start the week, making a 4.07% increase on the day and a staggering 80% surge since the beginning of the year. This meteoric rise has propelled the company's market capitalization to approximately €2.94 billion, leaving investors wondering if this trajectory can be maintained.

While the stock has traded in a range of €23-€25.50 recently, today’s breakout signifies a significant shift in sentiment and a potential re-evaluation of the company’s intrinsic value. The stock's 52-week range, previously capped at €25.74, has now been decisively breached, confirming the strength of the current bullish momentum.

flatexDEGIRO's ascent is underpinned by a series of strong financial results and strategic initiatives. The company's 2024 revenue reached €469.32 million, a 23.4% year-over-year increase, while net income jumped by an impressive 55.2% to €111.54 million. This growth momentum has continued into 2025, with Q2 revenue rising 11% to €132 million and net profit climbing 28% to €39.5 million.

Consequently, flatexDEGIRO has revised its 2025 guidance upwards, now projecting revenue growth of 4-8% (previously -5 to +5%) and net profit growth of 15-25% (previously -5 to +10%). This increased optimism reflects management's confidence in the company's future prospects.

Adding fuel to the fire, flatexDEGIRO implemented a share buyback program, initiated on October 1, 2024, and concluding on May 7, 2025. This program, valued at up to €50 million, represented approximately 3.5% of the company's market capitalization at the time of announcement. Share buybacks often signal management's belief that the company's stock is undervalued, boosting investor confidence and potentially increasing share value by reducing the number of outstanding shares.

Further bolstering investor confidence was the announcement of a dividend of €0.04 per share on June 5, 2025. While the dividend yield of approximately 0.16% is modest, it signals a commitment to returning value to shareholders and underscores the company's healthy financial position.

Analyst sentiment remains largely positive, with Deutsche Bank maintaining a ‘Buy' rating for flatexDEGIRO last week. The average price target of €24.55 has however been surpassed by recent price action, with the street either not catching up with momentum, or not seeing value at the current level.

We can expect to find out soon how fundamentals are stacking up, with the company due to report its next quarterly earnings on July 22. The upcoming earnings release could prove crucial in determining whether the company can sustain its current breakout, and justify its elevated valuation.