Broadcom saw its shares head higher on Thursday after the company announced a $12 billion stock buyback.
Shares soared over 4% on the news in after-hours trading.
Broadcom announced that it would be buying back up to $12 billion of its common stock and that the authorization of the repurchase program is effective immediately and until the end of its 2019 fiscal year on Nov. 3.
“We are maintaining our policy of delivering 50 percent of trailing 12-month free cash flow to shareholders in the form of dividends while adding the ability to use the balance of our free cash flow not only for acquisitions but also for opportunistic buybacks,” said the company’s Financial Officer Tom Krause.
Disclaimer: We have no position in Broadcom Inc. (NASDAQ: AVGO) and have not been compensated for this article.