Apple's Share Buy Back Pushing AAPL Higher
This week, when Apple reported strong quarterly earnings and iPhone sales that blew analyst projections out of the water, the company also revealed a healthy investment in itself.
All told, Apple spent approximately $18 billion to purchase nearly 32 million shares of AAPL during the March quarter. This move is just one of a multitude of factors pushing shares of AAPL higher over the last 48 hours.
On Wednesday, Apple announced a seven-for-one stock split and also confirmed a new threshold for share buybacks, which are now capped at $90 billion. "As part of the program," Apple explained in its report summary, "the Board has increased its share repurchase authorization to $90 billion from the $60 billion level announced last year. The Company expects to continue to utilize about $1 billion annually to net-share-settle vesting restricted stock units."
Billionaire philanthropist and heavyweight Apple shareholder Carl Icahn was among the happiest of campers in response to the news. "Agree completely with $AAPL's increased buyback and extremely pleased with results. Believe we'll also be happy when we see new products," Icahn tweeted.