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Banco Santander SA is not a strong buy at this moment for a beginner investor with a long-term strategy. The technical indicators show mixed signals, and the stock is currently in a pre-market decline. While the company has shown strong financial performance in the latest quarter and hedge funds are buying, the lack of immediate positive trading signals and recent downgrades from analysts suggest caution. Holding the stock or waiting for a better entry point may be more prudent.
The MACD histogram is negative and expanding, indicating bearish momentum. RSI is neutral at 34.374, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support is at 11.992, close to the pre-market price of 11.95, suggesting limited downside. However, the stock has an 80% chance of declining in the next day, week, and month.

Hedge funds are significantly increasing their buying activity, with an 87575.41% increase over the last quarter. The company has shown strong financial growth in Q3 2025, with revenue, net income, and EPS all increasing YoY. Additionally, Banco Santander's acquisition of Webster Financial expands its U.S. presence, which could be a long-term growth driver.
Analysts have downgraded the stock recently, citing concerns about the ambitious $800M cost synergy target related to the Webster Financial acquisition. The stock has a high probability of short-term declines based on candlestick pattern analysis. There is no recent congress trading data or strong trading signals from AI Stock Picker or SwingMax.
In Q3 2025, Banco Santander's revenue increased by 0.67% YoY to $16.64 billion, net income rose by 14.70% YoY to $4.10 billion, and EPS grew by 21.74% YoY to 0.28. These figures indicate strong financial growth, particularly in profitability metrics.
Recent analyst activity includes a downgrade by Morgan Stanley to Equal Weight with a price target of EUR 11.50, citing concerns about the integration of Webster Financial. Other analysts have also downgraded the stock in recent months, reflecting mixed sentiment. However, earlier upgrades from Citi and Deutsche Bank suggest some optimism about the company's prospects.