{"id":330868,"date":"2024-12-12T23:31:22","date_gmt":"2024-12-12T15:31:22","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330868"},"modified":"2024-12-12T23:31:24","modified_gmt":"2024-12-12T15:31:24","slug":"trade-the-news-smph-readies-p10-billion-stock-buyback-program","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-smph-readies-p10-billion-stock-buyback-program\/","title":{"rendered":"Trade the News: SMPH readies P10-billion stock buyback program"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>POSITIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>SM Prime Holdings<\/td><\/tr>
Stock Code<\/strong><\/td>SMPH<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 40.30<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Real estate giant SM Prime Holdings Inc. (SMPH) has earmarked up to P10 billion to buy back some of its shares from the public in a move seen to raise its share price.<\/p>\n\n\n\n

In a stock exchange filing on Tuesday, the Sy family-led developer said its board of directors had approved of the share buyback program that was valued at P5 billion to P10 billion.<\/p>\n\n\n\n

\u201cThe final terms and implementation of the program have been delegated to management,\u201d SM Prime said in its disclosure.

Companies typically buy back shares from the public to raise their share price, helping boost investor confidence.<\/p>\n\n\n\n

So far this year, SM Prime\u2019s share price has plunged by 17 percent to P26.75 on Dec. 10 from P32.3 in the beginning of 2024.<\/p>\n\n\n\n

Jayniel Carl Manuel, equities trader at Seedbox Securities Inc., said that reducing the number of shares on the market could \u201ccreate some natural upward pressure on the stock price, especially if demand stays steady or even grows.\u201d

\u201cWith fewer shares floating around, the ones that remain tend to become more attractive to investors, and that can nudge the price higher over time,\u201d Manuel said.<\/p>\n\n\n\n

At the same time, he pointed out that buybacks reflected SM Prime\u2019s financial strength, noting that the company was \u201ccomfortable spending capital\u201d for such an exercise, indicating that \u201cthey\u2019re not worried about short-term cash crunches or emergency funding.\u201d<\/p>\n\n\n\n

SM Prime has yet to disclose how it would fund the program, although it has recently launched capital-raising activities.<\/p>\n\n\n\n

Last July, SM Prime and its parent firm SM Investments Corp., raised $500 million from the offshore debt market.<\/p>\n\n\n\n

(News Source: Philippine Daily Inquirer<\/a>)<\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Take advantage of the price opportunity that might arise when the news hits. Trade the news!<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1371],"tags":[],"class_list":["post-330868","post","type-post","status-publish","format-standard","hentry","category-trade-the-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=330868"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330868\/revisions"}],"predecessor-version":[{"id":330870,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330868\/revisions\/330870"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}