The news about Amazon stock split is already out as the the Board of Directors of Amazon Inc. has approved a 20-for-1 split of the Company’s common stock on March 9, 2022. The stock split and the proportionate authorized share increase are subject to shareholder approval of the Amendment at the 2022 Annual Meeting of Shareholders, which is currently scheduled to take place on May 25, 2022.
Each shareholder at the close of business on May 27, 2022 will have 19 additional shares for every one share held as of such date reflected in their accounts on or about June 3, 2022. Trading is expected to begin on a split-adjusted basis on June 6,2022.
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Buyback of Amazon shares – Details
In addition to the announcement of stock split, buy-back of shares of Amazon has also been announced by the Board of Directors of Amazon. There will be repurchases of up to $10 billion of the Company’s common stock.
The program allows the Company to repurchase its shares opportunistically from time to time when it believes that doing so would enhance long-term shareholder value.
The repurchase authorization does not have a fixed expiration. Purchases may be effected through one or more open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or a combination of the foregoing.
This stock repurchase authorization replaces the previous $5 billion stock repurchase authorization, approved by the Board of Directors in 2016, under which the Company had repurchased $2.12 billion of its shares.
Amazon share price is $2853 and with a market capitalization of 1.48 trillion dollars, the stock is listed on Nasdaq stock exchange. Amazon share has fallen by nearly 6 per cent in 2022 so far while over the last 12-months, the share is down by almost 13 per cent. The Amazon share price may witness some strength on the back of the news about stock split and the massive buyback program.