Tech giant Apple unveiled a record $110 billion stock buyback program, the largest ever seen in the United States above the firm’s own previous buyback programs of $90 to $100 billion seen in 2021 and 2018, respectively.

Steve Sosnick, chief strategist at Interactive Brokers, said the number is “astonishing,” with sheer size of the buyback program sparking speculation, as  some analysts suggested it signals a shift in Apple’s identity.

Sosnick posits that Apple might be transitioning from a “high-powered growth stock” reliant on research and development to a “value stock” prioritizing shareholder returns.

The company holds the top six spots on the list of the ten largest U.S. share-repurchase announcements, further distancing itself from competitors like Chevron, whose largest buyback was of $75 billion, and Google’s parent company Alphabet, whose largest buyback was of $70 billion.

The news of the buyback program coincided with Apple’s positive quarterly results, exceeding Wall Street expectations. The company not only surpassed sales estimates but also projected a return to revenue growth in the current quarter.

Additionally, Apple extended its streak of consecutive quarterly dividend increases to twelve years. The company currently pays investors $0.24 per share, with a dividend yield just above the 0.5% level. Its stock price rose over 8% in premarket trading to now stand above $180.

Featured image via Pixabay.