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.
