AT&T Cancels Share Repurchase, Stock Plummets
AT&T (NYSE: T) is putting the brakes on stock buybacks. The Dallas-based telecom giant announced that due to coronavirus, they would forgo a $4 billion share repurchase plan.
This did not sit well with investors as share prices plummeted just after the opening bell. AT&T stock fell to just above $28 per at the open before staging a recovery to nearly $30.
The company had previously agreed to this share buyback under an accelerated share repurchase agreement. AT&T has now canceled this ASR, citing the need to "maintain flexibility." The company will instead invest the money in serving customers, taking care of company employees, and investing in the 5G network.
Source Fool.com
