Apple during its third quarter ending in June, spent $5 billion to buy back its own 58,661 shares stock from the market. Amazingly Apple has so far spent $28 billion in fiscal 2014, to repurchase its own stock. The average price of Apple share that it bought was $85.23. Apple’s investment partners are also on the go to buy shares as per $12 billion Accelerated Share Repurchase program that was initiated back in January, and which will continue by 2014.
Apple’s buyback program is one of the largest buyback program and setting records both on quarter and yearly basis. Tim Cook, Apple’s chief executive in March 2012 announced Apple’s current dividend as well as share buyback plan. The Apple’s shares at that time were floating around $85 (split adjusted).
Initially at start of Apple’s shares buyback program in fiscal 2013, Apple’s share prices fall to as low as $55. That was a great price for Apple to buy back its own shares.
Apple accelerated its originally conservative plan of spending $2 billion on buybacks to a liberal $26 billion in calendar 2013 and $23 billion over the last six months of 2014.
In January Apple established the third ASR which helped the company to spend a healthy amount of $14 billion on shares buybacks within a two week period. This caused the Apple’s share to plunge more than 8 percent after Q1 release.
Apple’s shares following that have appreciated around a healthy figure of 25 percent, touching the threshold of company’s all time high of $100.01 set in September, 2012. Apple shares are currently at $97.67.
The Apple’s share dips and then buyback strategy has helped the company to effectively run its buyback program and subsequently generate high returns for its shareholders.
Since the beginning of fiscal 2013 Apple has spent over $51 billion on buybacks and almost $21 billion to distribute dividends. But Apple’s cash holdings are still quite high with a value of $164 billion getting a good boost from earlier $121 billion when in June Tim Cook first announced capital return program.
Apple through the years has produced best selling smartphone although its tablets could not add the much revenue as expected due to presence by its rivals such as Samsung.
Apple with $14 billion share grab, including a third $12 billion ASR and $2 billion in open market purchases, the company spent an additional amount of $4 billion in open market purchases in the spring quarter, resulting net outcome of $18 billion for fiscal Q2. Following Apple’s stock split, company now has 5.989 billion shares outstanding.