I was recently in LSX, a much smaller thinly traded mkt cap circa $80m company and they were buying back the majority of the stock most days and on a few occasions 100%.
The broker is appointed to buyback scrip at essentially the best prices available over a period of time no doubt with instructions from NHC to scale up or down thru the process … mostly dependent on operational cashflow, other opportunities, general capital management considerations. It’s a common misunderstanding that all buybacks are going to fully complete the 10% buyback approval when very few actually do.
Whilst one assumes the company is buying back only 9-10% of the traded shares it’s my view that it is actually much higher % of the actual available shares … like a lot of Asx stocks the trading pattern is high frequency algo based generating countless buy/sells and general churn … hence the daily sales volume appears large but not essentially available.
Like most I guess we would all like the buyback to accelerate but it may not be the best value for money than patiently soaking up at lower average pricing. It appears to me the broker is doing a reasonable job consistently buying in the lower ranges of daily pricing.
Longterm let’s hope NHC performance can continue to allow consistent cancellation of shares along with increasing dividends. Good luck with your investment. Hope this helps.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)