Prudential PLC (PUK) Stock Soars 3.65% on Share Buyback Announcement

Prudential's stock price surged to its highest level since November 2023 today, with an intraday gain of 3.65%.

The strategy of buying PUK shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a cumulative return of 12.81% compared to the FTSE 250's 22.69% return, indicating a slightly underperforming strategy in terms of absolute returns.

Prudential PLC (PUK) has seen a significant boost in its stock price, primarily driven by the company's announcement of a share buyback program. On May 12, 2025, Prudential revealed its plans to purchase its own ordinary shares through Barclays Capital Securities. This move is expected to reduce the number of outstanding shares, which can lead to an increase in stock price. Additionally, a share buyback often signals the company's confidence in its own valuation, further bolstering investor sentiment.