Apple (AAPL) May Kick $60B Buyback Into High Gear on Recent Dip
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Price: $165.00 -1.22%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
EPS Growth %: -0.7%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
EPS Growth %: -0.7%
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After recovering from recent 52-week low levels of around $385, shares of Apple (NASDAQ: AAPL) are back in consolidation phase this week and today in particular. Shares are down 4 percent to $425.86 mid-day and down nearly 6 percent on the week.
Traders are citing various factors for the selling pressure, including: the breech of various technical levels; Q1 selling by well-known hedge funds including: Julian Robertson's Tiger Management, David Tepper's Appaloosa and John Griffin's Blue Ridge Capital; and a takeover of market leadership status by Google (NASDAQ: GOOG) given its recent momentum.
Given the recent dip in the stock, it should be a no-brainier that Apple's Treasury department kicks the company's recently announced $60 billion stock buyback plan - the largest in corporate history - into high gear.
While it is not currently known if Apple has engaged the buyback plan yet, with its earnings in April Apple's CFO said the company will start buying back shares in earnest soon. At that time the company had $58 billion remaining on its $60 billion authorization. The company plans to buyback shares through the use of accelerated repurchase agreements and buying in the open market.
The recent 6 percent pullback in the stock could present a good opportunity to put some of Apple's shareholder wealth to work.
Shares of Apple are down $18, or 4 percent, intra-day to $425.86.
Traders are citing various factors for the selling pressure, including: the breech of various technical levels; Q1 selling by well-known hedge funds including: Julian Robertson's Tiger Management, David Tepper's Appaloosa and John Griffin's Blue Ridge Capital; and a takeover of market leadership status by Google (NASDAQ: GOOG) given its recent momentum.
Given the recent dip in the stock, it should be a no-brainier that Apple's Treasury department kicks the company's recently announced $60 billion stock buyback plan - the largest in corporate history - into high gear.
While it is not currently known if Apple has engaged the buyback plan yet, with its earnings in April Apple's CFO said the company will start buying back shares in earnest soon. At that time the company had $58 billion remaining on its $60 billion authorization. The company plans to buyback shares through the use of accelerated repurchase agreements and buying in the open market.
The recent 6 percent pullback in the stock could present a good opportunity to put some of Apple's shareholder wealth to work.
Shares of Apple are down $18, or 4 percent, intra-day to $425.86.
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