In yesterday's 10-Q, Yahoo! revealed that, from October 1 through November 8, they repurchased 13 million shares of its stock at an average price of $16.87 for a total of $212 million.
That’s a good amount, but I was thinking it would be possible for Yahoo! to repurchase all the $3 billion of stock in the 4th quarter. They will have to really step on the gas to accomplish that so soon. It likely won’t happen.
But there’s a positive spin here. Most of the buying that’s gone on in the stock has been coming from real institutional investors buying in to the stock in a big way. There are high hopes for Marissa.
If the stock’s reacted this well so far, imagine how it will respond when Yahoo really starts buying back its stock in larger numbers to reduce the share count?
PS It’s worth noting that Yahoo might have been precluded from buying their stock until after they reported their earnings on October 21st. It’s possible they only started buying stock a couple of days after that on say October 25th. If true, they purchased 13 million shares of Yahoo on 10 trading days or 1.3 million shares a day. Over that time period, Yahoo’s been averaging about 20 million shares traded every day, so you’re talking 6.5% of the daily volume. Since then, Yahoo!’s price has ranged between $16.57 and $17.50. The average cost of the 13 million shares Yahoo bought was $16.87. If they kept buying at the same pace of 1.3 million shares a trading day, it would take them 23 weeks to buy back $2.8 billion in stock.