Inwit's Strategic Buybacks Signal Resilience and Value in Telecom's Volatile Landscape

In a period of market uncertainty, Inwit (IT:INW) has doubled down on its shareholders through a disciplined share buyback program that underscores confidence in its valuation and strategic vision. The company's recent EUR28.7 million repurchase of shares between May 26–30, 2025—part of a broader EUR400 million initiative—serves as a critical signal of undervaluation and resilience in Italy's telecom sector. Here's why investors should view these moves as a buy signal.

The Buyback Blueprint: Confidence in Action

Inwit's May 26–30 buyback acquired 2.8 million ordinary shares at an average price of €10.24, bringing total treasury shares to 5.7 million (0.6% of its capital). This follows a smaller repurchase of 9,506 shares in mid-May, part of a larger EUR400 million program announced in April 2025. The program allows the company to repurchase up to 20% of its shares (139.8 million) by December 2025, with a first tranche of EUR300 million already in motion.

The minimal trading volume during this period (0 shares traded daily, per data) suggests the buybacks are directly driving demand in a stagnant market. While the stock dipped slightly to €10.11 on May 30, the program's execution at prices near the YTD average of €10.25 reflects management's belief that the stock is undervalued.

Why This Matters for Shareholder Value

The buybacks are not merely about signaling confidence—they're a strategic tool to amplify earnings per share (EPS). By retiring shares, Inwit reduces its outstanding capital, boosting EPS and improving metrics like price-to-earnings (P/E). At 0.6% of capital retired, the impact is modest today but sets the stage for larger cancellations if the full EUR400 million program is executed.

Consider this: If Inwit repurchases 20% of its shares, the reduction in shares outstanding could increase EPS by over 25%, all else equal. This math makes the stock a compelling play for income-focused investors, especially with Inwit's 9.32% YTD price growth and a €10 billion market cap that remains below analysts' €13.50 price target.

The Financial Backing: Strong Cash Flow, Strategic Debt

The buybacks are underpinned by Inwit's robust financials. Q1 2025 results showed 4.6% revenue growth to €266.2 million, with EBITDAaL rising 5.5%. Recurring free cash flow hit €158.1 million, providing ample liquidity. While net debt increased to €4.44 billion (due to buybacks and dividends), the company's 6x leverage ratio remains manageable, especially with a €750 million bond issuance and a €350 million EIB loan securing its balance sheet.

Navigating Volatility: A Contrarian Play

Critics might point to the stock's recent dip to €10.11 as a reason to pause. But this volatility is precisely why the buybacks are strategic. In a market where telecom stocks face macroeconomic headwinds, Inwit's moves signal that its infrastructure—5G towers, fiber networks, and digital assets—are undervalued. The company's 5.7 million treasury shares act as a buffer against dilution, while its Q1 expansion of 150 new towers and 740 hostings positions it to capitalize on Italy's digital transformation.

Analysts agree: The “Strong Buy” technical sentiment and “Buy” rating with a €13.50 target reflect a consensus that Inwit's stock is primed for a rebound.

The Bottom Line: A Bullish Call to Action

Inwit's buybacks are not just financial engineering—they're a vote of confidence in its long-term story. With a disciplined program to repurchase shares at stable prices, a fortress balance sheet, and growth catalysts like its 2025–2030 Business Plan, investors should view dips below €10.50 as buying opportunities.

The message is clear: In a sector rife with volatility, Inwit is executing a playbook to protect and grow shareholder value. Those who act now could secure a stake in a telecom leader poised to thrive as Italy's digital infrastructure expands.

Act now—before the market catches up.