The share price of BowLeven PLC (LON:BLVN) surged with 1.25% at the market opening today following the green euphoria from the last week.
The share buyback programme is still driving wild BVLN confirming the reinstated investors’ trust and stock appreciation.
From the date of the stock repurchase programme announcement the share price of BowLeven is in a constant and sharp upward move. BLVN is valued at 27.84 GBX recently and heavily demanded yet.
On August 19, 2016 BowLeven PLC released that the planned by the company share buyback programme for a maximum aggregate consideration of up to USD 10 million commences.
In the course of the programme implementation up to August 25, 2016 BowLeven acquired 875 991 shares. As a result, last Thursday the company had 1,698,374 shares in treasury and its issued share capital (excluding treasury Shares) consisted of 325,742,285 shares with voting rights.
These are expected occurrences considering the nature of buyback programmes. The also called share repurchase program is a technique through which a company buys back its own shares from the marketplace.
The reasons for implementing of such plans may vary. Some companies undertake its share repurchase based on management’s opinion that company’s shares are undervalued. Other companies make repurchase programmes for compensation reasons. In such cases, the company is buying back shares to issue them later to its employees and management in the form of stock rewards and stock options.
Without meaning what are the primary reasons for a buyback programme executing, the overall outcomes of this undertaking influences positively the share price. One of results of any stock repurchasing is the reduced number of company’s outstanding shares. It forces naturally an increased demand on less in quantity stock, resulting in boosted share price and better share price performance generally.
Since the share buyback reduces the total assets of the company, the changed capital structure influences usually positively all company’s metrics, like return on equity, earnings per share (EPS), revenues and cash flow.
Following the general rules of the share buyback programme the stock of BowLeven is already worth 2.73% more than it was yesterday. Seems like the boosted BLVN is headed at its 52 week high.
BowLeven PLC is an exploration and production company headquartered in Edinburgh with main focus on Africa.
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