Broadcom snags an incredible run in the market after they announced their intent on buying back their stocks. According to the chip making company, they’ll be looking to buy back a whopping $12 billion of stocks through various methods.
Furthermore, the announcement has been solidified after the company’s board approved the strategic move. The chip maker has been very active in purchasing back their stocks as their rival continues to push immense pressure on the company.
Broadcom has been providing the market with great strategic moves. Just last month, the chipmaker relocated from their Singapore headquarters to the United States. The move was slated after President Donald Trump rejected their plea to buy Qualcomm.
Currently, the company is residing in San Jose, California. Looking at their technical data, the company, after Thursday’s closing, had outstanding shares of about 411 million. The chipmaker was also valued at $98.71 billion after the session.
Broadcom Plans Stock Buyback
Furthermore, the company also noted that their plan of repurchasing some of its previous common stocks is going to be effective immediately. Their strategic move of stock buybacks is looking to see its end of 2019 fiscal year.
According to Broadcom Chief Financial Officer Tom Krause, “We are maintaining our policy of delivering 50 percent of trailing 12-month free cash flow to shareholders in the form of dividends while adding the ability to use the balance of our free cash flow not only for acquisitions but also for opportunistic buybacks,”
On that note, the company managed to keep a great performance in the market. The chipmaker managed to rally a total of 4.41% after Thursday’s session. The board’s approval made the investors excited about the future of the chipmaker.
The chipmaker continues to struggle this year after their failed attempt to purchases Qualcomm. Their 2018 performance is currently underwhelming, to say the least. Their 2018 performance still runs bearish with a total of 6.8% decline. They continue to climb their way up with these new plans and strategy.
On the other hand, a former chairman of their rival Qualcomm is looking to create a group that would for buyers to take the chipmaker private. According to former chairman Paul Jacobs, their group is looking to feature strategic investors and sovereign wealth funds.
Jacobs’ group plans to make a bid to purchase Qualcomm and make it private. According to him, a potential member is chip designer ARM.
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