Foxtons has announced that it is to buy back its own shares, following a sharp fall in its share price.
Share purchases will be made on behalf of Foxtons by brokers Credit Suisse and Numis.
It is the first time Foxtons has embarked on a buy-back since floating on the stock market in 2013, and comes shortly after it warned that London’s property market is “taking time to recover”.
Companies buy back their own shares to keep up the share price, by reducing the number of shares in circulation.
Yesterday, after making the announcement, Foxtons’ shares moved up 3p to finish at about 182p – but a long way off their high in May of almost 290p.
In the property market, Rightmove is a very active purchaser of its own shares.
Well done Foxtons. Smart move. Why let too many others profit when your share price rises again? Which it will for sure.
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