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Apple announces $110 billion share buyback, the largest in US history; Stock rallies afterhours
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Six out of the top 10 buybacks in US history belong to Apple, while three belong to Google’s parent Alphabet.
Apple Inc., manufacturer of the iPhone and other devices announced the largest ever share buyback in US history on Thursday, sending the stock soaring in extended trading.
The world’s largest company by market capitalisation intends to repurchase shares worth $110 billion, surpassing its own previous record of a $100 billion that it announced in 2018. In fact, six out of the top 10 buybacks in US history belong to Apple, while three belong to Google’s parent Alphabet.
| Stock | Buyback Size | Year |
| Apple | $110 Billion | 2024 |
| Apple | $100 Billion | 2018 |
| Apple | $90 Billion | 2021 |
| Apple | $90 Billion | 2022 |
| Apple | $90 Billion | 2023 |
| Apple | $75 Billion | 2019 |
| Chevron | $75 Billion | 2023 |
| Alphabet | $70 Billion | 2022 |
| Alphabet | $70 Billion | 2023 |
| Alphabet | $70 Billion | 2024 |
Apple’s recent announcement is also a 22% increase from the $90 billion buyback it announced last year, according to data from Birinyi Associates.
“An astonishing number,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “Apple may be acknowledging that they are becoming a value stock that returns money to shareholders rather than a high powered growth stock that needs its cash for R&D or expansion.”
Apple also reported earnings after the bell on Thursday, which surpassed investor expectations. While the company did not provide a formal guidance for the June quarter, CEO Tim Cook told CNBC that overall sales will grow in the “low-single-digits.” You can read more on that here.
In addition to the share buyback, Apple also announced a dividend of 25 cents, a one cent increase from the previous quarter, marking the 12th straight quarter of an increase in shareholder payout.
Share of Apple rallied as much as 8% in extended trading on Thursday. In case it does manage to hold on to those gains in regular trading on Friday, it will add up to $190 billion in market capitalisation.
(With Inputs From Agencies.)
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