There are several reasons why a company might decide to repurchase its own shares, including:
Increasing Share Value: Repurchasing shares can reduce the supply of a company's stock, potentially increasing its market value. Earnings Per Share (EPS): By reducing the number of outstanding shares, a company can increase its EPS, making it more attractive to investors. Utilizing Surplus Cash: Companies with excess cash might buy back shares as a way to return capital to shareholders. Preventing Hostile Takeovers: Repurchasing shares can make it more difficult for another entity to acquire a controlling interest.