CAE Inc. Soars 1.36% on Share Repurchase Plan

CAE Inc. closed flat today, with the share price rising to its highest level since February 2025, marking an intraday gain of 1.36%.

The strategy of buying CAE shares after they reach a high and holding for one week resulted in a 34.50% return over the past five years, compared to a benchmark return of 56.28%. The strategy had a Sharpe ratio of 0.46, a maximum drawdown of -38.14%, and a volatility of 28.14%. It effectively managed risk but underperformed the market, making it less suitable for long-term investors seeking capital appreciation.

CAE Inc. recently announced the renewal of its normal course issuer bid (NCIB) on June 10, 2025. The company has received regulatory approval to repurchase up to 16,019,294 of its common shares for cancellation, which represents approximately 5% of its issued and outstanding shares. This move is part of CAE's capital allocation strategy aimed at enhancing shareholder value through share repurchases. The NCIB could influence investor perception of the stock's value, potentially impacting the stock price positively or negatively depending on market conditions and investor sentiment.