Investing.com -- Shares of BlackBerry Limited (NYSE:BB) climbed 4.1% following the company’s announcement of a new share buyback program. The program, which received approval from the Toronto Stock Exchange, authorizes BlackBerry to repurchase up to 27,855,153 of its common shares, representing about 4.7% of the public float as of May 5, 2025.
The buyback initiative, which BlackBerry can conduct through various exchanges and trading systems in Canada and the United States, is set to begin on May 12, 2025, and will end on the earliest of May 11, 2026, a date determined by BlackBerry, or when the maximum number of shares authorized for repurchase is reached. The company has not repurchased any securities in the past 12 months, and the daily purchase volume through the Toronto Stock Exchange will be limited to 721,194 common shares, barring block purchases.
BlackBerry’s decision to activate this share buyback program is based on the belief that the market price of its common shares may not always reflect the true value of the company’s business and future prospects. The repurchase of shares is seen as an advantageous use of excess funds, providing a beneficial return on capital. Additionally, buying back shares will counteract the dilutive impact of shares issued under BlackBerry’s equity incentive plan.
The company has expressed confidence in its financial position, having strengthened its balance sheet in fiscal 2025 and anticipating the generation of positive operating cash flow in fiscal 2026. BlackBerry maintains that any purchases made under the normal course issuer bid (NCIB) will align with its investment and capital allocation strategies without affecting its long-term goals.
The exact number of shares BlackBerry will repurchase and the timing of these transactions will depend on market conditions and regulatory limitations. There is no guarantee on the number of shares that will be bought back under the NCIB.
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