IG Group Continues its £150M Share Repurchases Program

IG Group continued its share repurchase program as it continued to boost its shareholder returns. The company has repurchased its shares in most days, which has helped boost its stock price to the highest point since April this year. It has risen by over 31% from its lowest level this year.

IG Group share repurchases

IG Group is a leading forex, CFD, and options company with a market cap of over 3.5 billion pounds and thousands of customers around the world.

The company’s business has been doing well lately even as the volume of transactions has plateaued. In a statement in August, the firm said that its business continued doing well in its FY 2022. Its revenue rose from £837 million in FY21 to over £973 million in 2022. In the same period, its net operating income rose from £843 million to over £979 million while its net profit rose to £477 million.

As a result, the company announced that it will increase the amount of money it returns to shareholders through a combination of dividends and buybacks. In its announcement, the firm said that it will repurchase shares worth £150 million. This amount is equivalent to about 4% of the total company.

Share buybacks are one way in which companies return funds to their shareholders. By reducing the share count, the firm is able to automatically boost its earnings per share (EPS). It also boosts confidence among investors.

IG Group has continued repurchasing its shares. Regulatory filings show that the company bought back shares in all market days last week. On Friday, it bought 75,399 shares in the open market through JP Morgan. On the previous day, the company acquired 56,901 shares at an average price of 831p. 

The company hopes to complete these repurchases in this financial year. At the same time, the company is continuing with its dividend payouts to investors. It will go ex-dividend on September 22 of this year and pay 44.2 pence in dividends per share.