Ray_li

I'm interested in buying some share but the company is currently buying its own shares back from the market and holding it in treasury

it currently has about 8.7 mill shares on the market.

What does it mean when a PLC buys back its own share? Good or bad sign?

GCollier

It's generally a good sign - it means the company has surplus cash which it is trying to distribute tax efficiently to its share holders (the price of the remaining shares should, hopefully, rise).

However, it is also indicating that the company can't think of a way to invest and use the money in a more profitable manner.

Gary.

Sonic'

My last company did it so they could control the amount of open shares on the market, because they did this the share price kept going up

I had a share scheme with them and in 6 months I made over 60% profit

Ray_li

Taylor Wimpey (Wimpey Homes + Taylor) is the company in question.

Their share price has been rising since they started buy shares back

GrantyBoy

good sign

TopBanana

Why would you buy shares in a homebuilder right now?

PaulC72

Another way of looking at it, are they buying heir own shares to give a false market impression that things are rosy in peperation for a takeover?

Chip

Shares may be going up slowly but they have also dropped 60% during the past 6 months.

Divi yield is quite good though.

Chip

Deep Singh

As said are you sure you want to invest in a homebuilder right now?

Ray_li

My first Impreza was paid for my Wimpey Homes share and ever since they merged with Taylor I've been watching them.

The homebuilder market may not be looking good right not but I'm looking long term investment.