SK Hynix will repurchase and cancel 24.07 million shares, roughly 3.3% of its total outstanding stock, in a program running from Aug 20 through Nov 19. The memory chip producer's shares surged over 12% in Seoul on Thursday and the KOSPI index climbed over 6% after investors reacted to the size of the payout. The rally followed a nearly 10% slide on Aug 19 when the market initially worried about the high cost of simultaneous buybacks and new factory investments.
The company raised its shareholder return target to more than 50% of cumulative free cash flow generated between 2025 and 2027. Management cited a disconnect between record AI profits and a stock price that had fallen about 15% over the prior month. This buyback accompanies a 54 trillion won plan to build new memory chip manufacturing plants disclosed earlier this month.
Key sources
- SUPPORT@melvininvests“the buyback should serve as a meaningful floor for the share price, providing tangible downside support in the near term”x.com