Yahoo Finance Apple Likely to Increase Stock Buyback Plan, According to Bernstein
Apple Inc. (NASDAQ: AAPL) will likely announce an increase in its stock buyback plan, according to Bernstein analyst Toni Sacconaghi. The firm reiterated an Outperform rating and $575 price target on the stock.
In a report published Wednesday, Sacconaghi commented that Apple could add $30 billion to current repurchase plans by the end of the 2015 calendar year.
The additional $30 billion would have the company's share repurchases total $45 billion to $50 billion.
Bernstein wrote, “If Apple does not raise the authorization, it would imply (about) $2 billion of repurchases per quarter vs. an average of nearly $8 billion per quarter over the past six quarters," he wrote. "If Apple adds $30 billion to its current repurchase authorization, it would imply (about) $6 billion per quarter over the next seven quarters.”
Last year, Apple approved a $100 billion cash-return program. $60 billion of the total was announced to be in stock buybacks.
Apple will report second quarter results after the close on April 23.
Shares of Apple closed at $519.01 on Wednesday. The stock is currently up 1.0655 percent at $524.54.
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