BTI - British American Tobacco Announces a Share Buyback. Here's What Investors Need to Know.
2024-07-02 06:50:00 ET
Tobacco and nicotine products company British American Tobacco (NYSE: BTI) recently said it had repurchased 150,000 shares of stock at an average price of about $32. Companies repurchase their stock all the time; once purchased, it's taken out of circulation, which reduces the number of shares outstanding.
Companies repurchase shares for various reasons, often to send a message to the market or shareholders. So, what does British American Tobacco's repurchase potentially say about the stock, and should investors follow suit and buy shares for themselves?
Share repurchases are very common. They are one of the primary methods (along with dividends) companies use to share profits with shareholders. Share repurchases decrease the number of shares outstanding , which drives higher earnings per share (EPS) . Higher EPS generally translates to a higher share price.
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British American Tobacco Announces a Share Buyback. Here's What Investors Need to Know.