CRH Shares Soar 5.73% on $300M Buyback Plan

CRH's share price surged to its highest level since March 2025 today, with an intraday gain of 5.73%.

The strategy of buying CRH shares after they reached a recent high and holding for 1 week significantly underperformed the market. The 5-year total return of the strategy was only 135%, compared to the broader market's 350% gain. This indicates that this strategy was not profitable over the past 5 years and suggests that relying solely on recent high prices for investment decisions is unlikely to lead to optimal returns.

CRH plc has recently announced a share buyback program, which involves the acquisition and cancellation of its ordinary shares in the United States. This initiative aims to repurchase up to $300 million worth of shares, with the goal of optimizing the company's capital structure and enhancing shareholder value. This strategic move is expected to have a positive impact on the company's stock price by reducing the number of outstanding shares and potentially increasing earnings per share.

The share buyback program is part of CRH's broader strategy to return value to shareholders and improve its financial performance. By repurchasing shares, the company can demonstrate its confidence in its future prospects and provide a boost to investor sentiment. This move is likely to be well-received by investors, who may view it as a sign of the company's commitment to creating long-term value.