Toyota Motor Corporation (TM) is making waves in the market today with an announcement that’s sure to catch the attention of investors. The company has revealed a significant expansion of its share buyback program, increasing the total amount to a hefty 1.2 trillion yen, which translates to a whopping $8.31 billion. This move signals Toyota’s confidence in its stock price and the overall market conditions.
The company is aiming to repurchase up to 530 million shares, representing 3.93% of its outstanding shares, excluding treasury shares. This ambitious repurchase plan will run from May 9, 2024, to April 30, 2025, keeping the duration of the program consistent with the previous announcement.
Toyota’s decision to increase the buyback limit reflects its strategy to effectively manage its shareholdings and respond to the evolving market landscape. This move is particularly noteworthy as it follows a previous announcement in July where the company disclosed plans to repurchase ¥806.8 billion ($5.2 billion) of its shares from key Japanese banks and insurers. This earlier move was part of a broader strategy to untangle its shareholdings with financial partners.
It’s important to note that this recent announcement follows a report earlier this month that Toyota Motor had trimmed its 2026 EV production target by 30% to 1 million cars due to a slowdown in global demand.
Investors seeking exposure to Toyota stock can consider ETFs like Trust for Professional Managers ActivePassive International Equity ETF (APIE) and Avantis International Large Cap Value ETF (AVIV).
The news of Toyota’s increased share buyback plan has already had an impact on the stock price. TM shares are currently trading down 0.63% at $184.24.
This strategic move by Toyota is likely to generate significant interest among investors and analysts. It will be interesting to observe how this buyback program unfolds and its impact on the company’s stock performance in the coming months.
