Tech investor SoftBank’s stock was a bit of on a slump in October, and all of a sudden surged over 30%
That only due to buybacks announcement that took investors by surprise
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FactSet chart of Soft bank stock fluctuations
On Tuesday, SoftBank provided the likely answer: The company completed 330 billion yen, equivalent to around $2.3 billion, in share buybacks. That is a huge surge compared with its recent pace of buybacks; in September, for instance, it bought back ¥88 billion.
Since 2020, SoftBank has directed more of its cash to buybacks to boost its stock, which has long traded at a substantial discount to the combined value of its assets.
“This is by far the most aggressive and sustained buyback pace since it finished its massive buybacks in May 2021,” Redex Research analyst Kirk Boodry said.
The pace,seems to signal an additional buyback could be on the way, but there also seems little rush to announce a new plan now,” he added.
The buyback disclosure comes ahead of SoftBank’s quarterly earnings presentation on Friday, which is set for a change. Billionaire Chief Executive Masayoshi Son is slated to forgo his standard zany presentation and Q&A, taking an uncharacteristically subdued approach after multiple rough quarters.