Share Buyback Transaction Details
January 16 – January 22, 2025
Alphen aan den Rijn – January 23, 2025 – Wolters Kluwer (Euronext: WKL), a global leader in professional information, software solutions, and services, today reports that it has repurchased 76,532 of its own ordinary shares in the period from January 16, 2025, up to and including January 22, 2025, for €13.2 million and at an average share price of €171.92. These repurchases are part of the share buyback program announced on October 30, 2024, under which we intend to repurchase shares for €100 million during the period starting January 2, 2025, up to and including February 24, 2025.
Share buybacks are a common practice among companies that have excess cash on hand and believe that their stock is undervalued. By repurchasing shares, companies can return value to shareholders and boost earnings per share. This can also lead to an increase in share price as the total number of outstanding shares decreases, making each remaining share more valuable.
Effect on Me
If you are a shareholder of Wolters Kluwer, the share buyback program could potentially benefit you in a few ways. Firstly, the repurchase of shares can increase the value of your remaining shares as the company’s earnings are divided among fewer shares. Additionally, share buybacks often signal to the market that the company believes its stock is undervalued, which can attract more investors and drive up the share price in the long run.
Effect on the World
While share buybacks can have positive effects for individual shareholders, they have been a subject of controversy in recent years. Critics argue that companies should instead be using excess cash to invest in research and development, employee wages, or other initiatives that promote long-term growth and sustainability. Excessive share buybacks can also artificially inflate stock prices and lead to increased economic inequality.
Conclusion
In conclusion, share buybacks can be a useful tool for companies to return value to shareholders and signal confidence in their stock. However, it is important for investors and policymakers to consider the broader implications of share buyback programs and ensure that companies are balancing short-term gains with long-term sustainability.
