Wall Street to Apple: boost buy back to fuel stock prices

By , Aug 19, 2013

apple money

Although Apple is set to buy back $60 billion of company stock through 2015, experts are advising CEO Tim Cook and others to boost that figure. An additional $50 billion stock repurchase could add $4.25 to share value at little cost to the cash-rich technology giant, according to one Wall Street analyst and activist investor Carl Icahn.

Icahn, who recently bought $1.5 billion of Apple stock, helped Apple tock surpass $500 per share…

On Monday, Duetsche Bank analyst Chris Whitmore told investors (via AppleInsider) at $500 per share, an additional $50 billion of Apple stock buyback could boost the company’s earnings per share by $4.25 for fiscal 2014.

The 10.5 percent yearly increase could be accomplished in-house, Whitmore said. Not only does Apple net $140 per share, but the estimated $1 billion debt interest payment would be offset by reducing dividend payments by $1.2 billion.

Last week, billionaire investor Carl Icahn said he spoke with Cook. Although Icahn did not mention a specific figure for a potential larger buyback, he did advise the Apple leader to increase the company’s planned stock repurchase.

Whitmore and Icahn are not alone in urging Apple to boost its $60 billion buyback. RBC Capital’s Amit Daryanani recently told investors Apple could buyback $120 billion in company shares – essentially doubling its initial amount – and see 2014 earnings per share rise by 10 percent.

While a larger stock buyback could earn Apple more praise from Wall Street investors, Cook and other executives likely remember the firestorm of negative publicity that erupted after news of a $60 billion buyback.

Despite being universally loved by investors and Wall Street observers, the move highlighted Apple’s complex tax-sheltering techniques, including filtering much of its European profits through Ireland.

Talk of a beefier buyback appears to be gaining more fans than the weekend opener of the Steve Jobs biopic. The movie, in which actor Ashton Kutcher depicts the iconic Apple co-founder, opened in 7th place, earning just $6.7 million in its first days.

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  • theGODofmyBATHROOM

    waaaaaaaa, they only care abput money…. iOKKK i will gave them some

    • Gorgonphone

      cook ‘n ive = the “get money kill the brand” team

  • Gorgonphone

    lol at the artificial stock boosting inflationary technique..lol because the products are no doing enough to boost the stock value.. welcome to apple decent into mediocrity and lameness.. they are just lucky that android and samsung are too lame to capitalize n this BS

    • Guest

      Ive seen you talking pointless trash about apple in three seperate articles now. GET A LIFE.