BMW continues share buyback program: experts expect positive effects.

BMW continues share buyback program: experts expect positive effects.

According to a report by www.finanzen.net, the premium manufacturer BMW is continuing its share buyback program with a total volume of up to 2 billion euros at the beginning of next year. The second tranche of the 2023/2025 share buyback program starts on January 2, 2024 and will have a volume of up to 410 million euros for ordinary shares and up to 90 million euros for preferred shares. A maximum of around 28.53 million ordinary shares and around 6.05 million preference shares may be purchased. The first tranche of the program has already been completed, with BMW shares being bought back for almost 500 million euros. The main purpose of the share buyback program is to redeem shares with a corresponding reduction in the share capital.

Given these developments, we can expect that the increased buyback of own shares will have a positive impact on BMW's share price. Reducing the number of shares outstanding can create a shortage that could potentially attract interest from new investors and cause the stock price to rise. This development could also increase investor confidence and have a positive impact on the company's overall image.

Furthermore, buying back shares can also have a positive impact on the company's earnings metrics by increasing earnings per share for the remaining shareholders. This could help increase interest from long-term investors.

Overall, BMW's continued share buyback signals positive economic and financial stability for the company, which could potentially impact the entire automotive sector.