Analysts Praise Apple’s ‘Impressive’ Stock Buyback Program

(CTN News) – There is no doubt that Apple is at the forefront of stock buybacks among the tech giants.

It has been estimated that between 2013 and 2023, the company spent $621 billion on purchasing its own shares.

Taking Google parent Alphabet’s stock expenditures over the same period as a reference point, Alphabet spent about one third of that amount on its stock.

In the last fiscal year, Apple spent $78 billion on buying 456 shares of its stock, which resulted in a decrease of approximately 2% in the number of outstanding shares of its stock.

According to James Brumley of the stock investing and stock market research site Motley Fool, Apple’s buyback program is actually quite impressive, considering what’s feasible from a stock buyback standpoint.

In order for buyback programs to be so successful, there are several factors involved. Consequently, they result in a decrease in the number of shares in circulation, which increases the stake and dividend return of an investor.

In general, investors view stock repurchases as positive moves, even though some companies use them to artificially boost their stock price. Stock repurchases by companies with competent management, on the other hand, are generally considered to be positive.

A properly executed stock repurchase is one of the best and lowest-risk ways to create value for shareholders, according to Bankrate’s James Royal.

The parent company of Google, Alphabet, demonstrated to the world last week the potential value of these types of programs. Despite a strong first-quarter earnings report, Google shares shot up 14% on news that its board approved $70 billion in stock buybacks as well as its first-ever dividend, making it the single biggest mover on the stock market in the past several years.

There will be an earnings report from Apple after the bell on Thursday. In morning trading, the price of the share of the tech giant rose 3% to $174 after investment firm Bernstein upgraded the rating of the stock to a strong buy, according to reports.

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