For the first time since December 2022.
In addition to dividends, public companies can return funds to their investors by buying back their own shares. Of course, for this, the issuer must have a sufficient amount of free funds and have some confidence in the future, since such programs for returning capital to investors are calculated for several quarters, at least. According to information BloombergMicron Technology sees all the necessary conditions for resuming share buybacks.
Image source: Micron Technology
It initially bought them back in May 2018, but suspended the buyback in December 2022, citing unfavorable market conditions. The memory market was indeed in decline at the time, and it was irrational to spend money on share buybacks. Now, however, the conditions in the memory market have improved enough for the company to return to buying back its own shares. The news itself caused Micron’s share price to rise by almost 5% in US trading. Much of the optimism of Micron’s management is presumably due to the high demand for HBM memory chips. The company has certified its 8-tier HBM3E chips for use in NVIDIA H200 accelerators, so the American memory manufacturer is definitely “on the same path” with the market leader in such solutions.
