Buybacks Start Tomorrow
Shares in Japanese vehicle maker Toyota are trading higher today on news that the company will buy back around $826 million worth of shares this week. With shares in Toyota still sitting more than 10% down off the recent highs, the carmakers has said that it plans to be “more flexible” than ever in terms of how it uses buybacks.
Shares in the company have suffered a slew of issues over recent months. A cyber-attack on one of the firms suppliers has halted factory production, the recent earthquake in Japan has also struck a blow to operations, as well as fresh lockdowns in China amidst a COVID resurgence there.
While the scale of Toyota’s buyback is relatively small compared with the overall size of the company, the move is nevertheless bullish for Toyota’s stock price. Buybacks are scheduled to start tomorrow and continue through until May 10th.
Technical Views
Toyota
The rally in Toyota’s shares off the 1828.5 lows has seen the market trading firmly higher with price now quickly approaching a test of the 2163.5 level and bear channel top. This will be a key test for the stock, with both MACD and RSI firmly bullish here, a break of this region will put focus on a higher move up to the 2334 level next.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.