Plus500 has ramped up its share buyback program, with the London listed broker purchasing 29,500 of its own ordinary shares, the company announced this Friday via a regulatory filing.
According to the regulatory announcement filed through the London Stock Exchange (LSE), Plus500 purchased 29,500 of its ordinary shares on the 21st of May 2020, each through Credit Suisse Securities (Europe) Limited.
Since the 15th of May, Plus500’s share price was experiencing a consistent boost, rising from £12.73 last Friday and peaking at £13.75 on Wednesday. However, since hitting its peak, the share price fell on Thursday and so far today, the price has continued to drop.
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Plus500 paid £397,070 for shares
For the latest batch of shares, the volume weighted average price was £13.46. Therefore, the Israel based broker paid around £397,070 for the 29,500 ordinary shares. So far during the company’s share buyback program, Plus500 has hovered around the 23 thousand mark, or less, when repurchasing its shares.
As Finance Magnates reported, the retail broker first announced its most recent share buyback program on the 12th of February 2020 in which the company will buy back up to an additional $30 million of its ordinary shares. This follows the completion of the firm’s previous buyback program, in which it repurchased $50 million worth of shares.
The latest share buyback program will run from the 12th of February 2020 up until the 31st of August this year. However, the program might end earlier on the date of the announcement of the company’s interim results for the six months ending 30 June 2020.
There could be a number of reasons as to why Plus500 bought more shares than normal on Thursday. One reason could be that it is trying to finish its buyback program by the 30th of June, however, this is only speculation.