Oil giant Chevron is funneling its money back into itself. Early today, the company reported plans for a share-buyback plan worth up to $15 billion. Based on yesterday's close, this sum would buy more than 163 million shares, or about 7.6% of stock outstanding. This follows 3 separate $5 billion repurchases since 2005, the last one of which was finished this month. Company Chairman/CEO asserted: We believe it is appropriate to continue to return cash to our stockholders through share repurchases. The company will execute its buybacks from time to time during the next 3 years and they may be discontinued at any time.
After a modest pullback on Tuesday amid a drop in crude prices CVX shares are 1.3% higher in pre-market trading activity. A move of this magnitude in regular trading should allow the shares to retake control of their 10-day moving average and send them back on their way to a new all-time high.