Samsung Electronics pumps due to $7 billion stock buyback plan

Sina Finance News on November 18th, Samsung Electronics’ stock price surged significantly. The company announced last Friday that it will buy back 100 trillion Korean won (71.7 billion U.S. dollars) of stocks in stages within the next 12 months to help enhance shareholder value. Samsung’s stock soared by 7.5% in early trading on Monday, driving the Korean KOSPI index up by over 2%. Samsung stated that it will start repurchasing 30 trillion Korean won of stocks from the market this Monday, including 50.14 million common shares and 6.91 million preferred shares, and will be canceled by February 17, 2025. The board will later decide on the remaining 70 trillion Korean won of stocks. KB Securities analyst Jeff Kim said, “The expected 100 trillion Korean won stock buyback is likely to be a short-term pump for Samsung Electronics’ stock price. In the medium to long term, the momentum for stock price pump should come from Samsung’s leading position in high-bandwidth memory products next year and significantly reduced inventory of general-purpose memory chips such as DDR4 and DDR5.”