What Happened to the AMP Share Price?
Shares of AMP Ltd [ASX:AMP] are up more than 3% in afternoon trading as the company announced a $500 million share buyback.
Why AMP Ltd Shares Popped Higher This Afternoon
The company announced a big drop in profit for 2016, and plans to cut jobs. At the same time, AMP announced it would begin a share buyback, to buy up to $500 million-worth of stock on the market.
This sent the share price up by more than 3%. It’s the continuation of a welcome bounce for the AMP share price. It’s trading a long way below the peak it reached in 2002 of $11.76, but the past few months have seen the stock build some momentum.
With a $500 million buyback in place, this could provide some support for the stock, and push it on to further gains.
What now for AMP Ltd?
A buyback isn’t the be-all and end-all for a stock. But, providing a company can at least meet market expectations in terms of revenue and profits, the buyback can provide a decent amount of buying support for a stock. The AMP share price has been super volatile over the years, but with a buyback in place, it’s possible this could add some stability to the shares.