Key Takeaways:
Pershing Square Holdings, Ltd. (LN:PSH) will repurchase $100 million of its shares after the stock slid approximately 16 percent year-to-date, a move the investment firm expects will be accretive to its net asset value.
The buyback, announced Friday, will be for public shares trading on the London Stock Exchange. "The program is expected to be accretive to NAV per share and will reduce PSH's capital," the company said in a press release. Jefferies International will act as the sole buyback agent.
The new authorization follows a history of share repurchases. Since commencing its first program on May 2, 2017, Pershing Square has bought back 74,924,531 shares for a total of $1.9 billion. The average price paid across those buybacks was $24.99 per share, less than half the stock's current price of $54.20.
With shares trading near a 52-week low, the $100 million program represents about 1.04% of Pershing Square's $9.58 billion market capitalization. The buyback signals management's confidence in the stock's value despite the recent downturn. Investors will be watching to see if the repurchase program provides support for the share price in the coming weeks.
This article is for informational purposes only and does not constitute investment advice.
