(Bloomberg) — In a move fitting for one of the world’s biggest companies, Apple Inc. just announced the largest U.S. stock buyback ever, saying its board had approved an additional $110 billion in stock buybacks.
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With this announcement, the iPhone maker surpasses its own record for the largest repurchase value announced in the United States. In 2018, the tech giant authorized $100 billion in stock buybacks, according to data compiled by market research firm Birinyi Associates dating back to 1999.
“An astonishing number,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “Apple may recognize that it is becoming a value stock that makes money for shareholders rather than a high-powered growth stock that needs cash for R&D or expansion.”
In total, Apple is responsible for the first six of the top 10 largest share buyback announcements ever made in the United States. The list also includes Chevron Corp. and Alphabet Inc.
Apple also reported post-market quarterly results on Thursday that beat investors’ expectations. The company reported sales above estimates and predicted it would return to revenue growth in the current period. Apple also increased its quarterly dividend for the twelfth consecutive year. That has fueled hopes that the slowdown hitting the company will ease.
Read: Apple Recovers After Company’s Guidance Returns to Sales Growth (2)
Shares rose 7.9% in after-hours trading. If gains hold on Friday, the move would add more than $190 billion to the market value.
The gains come as a welcome reversal for Apple investors, as the tech giant lagged its Magnificent 7 peers this year through Thursday’s close. Apple shares are down 10%, while the S&P 500 is up more than 6%.
–With the help of Elena Popina.
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