The situation at packaging specialist Gerresheimer has taken a severe turn for the worse. Investors, hoping for reassurance, are instead facing fresh alarm bells. Germany’s Federal Financial Supervisory Authority, BaFin, is significantly expanding its probe into the company’s accounting practices. This escalation raises a critical question: is the Düsseldorf-based group on the brink of a complete collapse in market confidence?
Shareholder Wealth Evaporates Amid Sell-Off
Market sentiment has crystallized into a devastating reaction. A brutal wave of selling pressure has gripped Gerresheimer’s stock, reflecting deep-seated investor uncertainty. The equity closed at a new 52-week low of €15.57 in the previous session.
The technical chart picture mirrors this fundamental distrust. The share price has collapsed by a further 25 percent in just the last seven trading days. Viewed over a twelve-month horizon, shareholders have now seen the value of their investment eroded by more than 80 percent.
Should investors sell immediately? Or is it worth buying Gerresheimer?
BaFin Broadens Its Investigative Scope
The financial regulator is showing no signs of relenting. According to a company announcement, the ongoing examination is not only continuing but is being supplemented by an additional investigation. The initial focus was primarily on the 2023/24 financial report; however, auditors are now also scrutinizing the period from December 1, 2024, to May 31, 2025.
The core of the regulatory concern involves “bill-and-hold” transactions. This accounting practice recognizes revenue for goods that have been invoiced but not yet physically delivered to the customer. The authority’s decision to extend the timeline of its review strongly suggests that prior doubts regarding the proper booking of these transactions have not been resolved.
A Precarious Path Forward
The outlook for Gerresheimer appears increasingly constrained. As long as the allegations persist and BaFin delves deeper into the company’s books, the shares remain a highly speculative investment. Given the intense regulatory pressure and the unresolved scale of the accounting issues, the potential for a sustained price recovery seems distant at present.
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