In addition to the stock split announcement, Amazon’s share buyback has also been announced by the Board of Directors.
The news of Amazon’s stock split is already out, as Amazon Inc.’s board of directors. approved a 20-for-1 split of the company’s common stock on March 9, 2022. The stock split and proportionate authorized stock increase are subject to shareholder approval of the amendment at the 2022 Annual Shareholders’ Meeting, currently scheduled for May 25, 2022.
Each shareholder will have 19 additional shares at the close of trading on May 27, 2022 for each share reflected in its accounts as of that date on or about June 3, 2022. Trading is expected to begin on a split-adjusted basis on June 6. 2022.
Amazon Share Repurchase – Details
In addition to the stock split announcement, Amazon’s share buyback has also been announced by Amazon’s Board of Directors. Up to $10 billion of the company’s common stock will be repurchased.
The program allows the Company to opportunistically repurchase its own shares from time to time when it believes that doing so would enhance long-term shareholder value.
The purchase authorization has no fixed expiration date. Purchases may be made through one or more open market operations, OTC transactions, transactions structured through investment banking institutions, or a combination of the foregoing.
This share repurchase authorization replaces the previous $5 billion share repurchase authorization approved by the Board of Directors in 2016, under which the Company had repurchased $2.12 billion of its shares.
Amazon’s share price is $2,853 and with a market cap of $1.48 trillion, the stock is listed on the Nasdaq stock exchange. Amazon’s stock is down nearly 6 percent so far in 2022, while its stock is down nearly 13 percent in the past 12 months. Amazon stock price may see some strength following news of the stock split and massive buyback program.
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