Pearson Starts £175M Share Buyback Program to Boost Value

Pearson plc initiates a significant £175 million share buyback program. This strategic move is expected to enhance shareholder value and could positively influence its stock price.

Date: 18-03-2025

AI Rating: 7

Share Buyback Program Details
Pearson plc has announced the commencement of its £175 million share buyback program, part of a larger £350 million initiative. The first phase is set to start on March 18 and run until August 18, aiming to reduce the company's capital by canceling repurchased shares.

This program is noteworthy as share buybacks typically signal confidence from management in the company's financial health and future prospects. By planning to cancel shares, Pearson effectively reduces the number of outstanding shares, which can help enhance earnings per share (EPS) and potentially raise the stock price.

The company has also appointed Morgan Stanley & Co. International plc to manage this buyback, further indicating a structured approach to this financial strategy.

The authorization by shareholders at the upcoming April 26, 2024, AGM to buy up to 68.66 million shares suggests robust backing for this initiative, which could positively reshape investor perceptions and confidence in Pearson's business.

Stocks: PSO