SoftBank has announced a major buy back. The Japanese company said that it would buy back $4.4 billion worth of its own shares, Reuters reports. That amounts to 14.2 percent of the company's shares. This is the biggest buyback the company has ever made.
The company's stock has fallen throughout the year by 37 percent, causing worry in the market. SoftBank hopes that this purchase will increase share price, as well as instill confidence in investors going into the future.
The repurchasing will take a year, according to Business Insider. This buyback follows a buyback the company made in August, where SoftBank bought $1 billion worth of its own shares.
Not only are SoftBank's stocks falling, but its majority stake in wireless carrier Sprint Corp., is looking grim. Sprint has showed steady losses in the last year.
The company is positive, however, that the stocks will rise, according to the New York Times. In the Third Quarter, SoftBank reported a 7.3 percent rise in profits, which is already a good sign.
"SoftBank shares have become so cheap now. For the company to say it's buying back at this time will have an 'announcement effect,'" said analyst at SMBC Friend Research Center, Naoki Yokota.
It's a move that will definitely demand a response from investors, but only time will tell what that response is.
