Shares of Japanese conglomerate Sony surged in morning trade on Friday after the company announced the previous day a share buyback of more than $1 billion.
Shares of Japanese conglomerate Sony surged in morning trade on Friday after the company announced a share buyback of more than $1 billion and a partnership with a major gaming competitor.
In Tokyo morning trade, Sony’s stock skyrocketed more than 10%, soaring to levels not seen since December 2018.
The jump followed the company’s Thursday announcement that it would repurchase up to 4.8% of the total number of shares issued — worth up to 200 billion yen (approx. $1.82 billion). The buyback period will last from May 17,2019 to March 31,2020.
„The company is now able to both invest in growth and provide shareholder returns as the level of free cash flow created from businesses increases, and this gives a favorable impression,“ Yu Okazaki, an analyst at Nomura, wrote in a note.
The latest developments follow Sony’s first ever share buyback in February.
