SK Hynix (SKHY) Stock Jumps 4% on $29 Billion Buyback Plan

TLDR

• SK Hynix announced a $29 billion stock buyback plan, covering around 24.07 million shares over three months starting August 20.
• The company said it believes its value is “not fully reflected in its current stock price.”
• U.S.-listed ADRs rose nearly 4% to $161.67 Wednesday after falling 9% the prior day.
• SK Hynix will return more than 50% of free cash flow to shareholders, up from its previous “within 50%” target.
• The board also approved a plan to consider adding special dividends, with around 69 trillion won in net cash on hand.

SK Hynix’s U.S.-listed ADRs jumped 3.9% to $161.67 on Wednesday after the memory chip maker unveiled a massive share buyback program worth 40 trillion South Korean won, or roughly $29 billion.

SK hynix Inc., SKHY

The move came one day after the stock dropped 9%, and it pulled rival memory names higher too. Micron rose 0.7% and Sandisk gained 1.6%.

The buyback covers around 24.07 million shares and runs over three months, starting August 20. The company said it plans to fully cancel all repurchased shares.

… Continue reading the full article at the original source below.