Plus500 Thrives with Ongoing Buyback Program

Plus500 purchased 65,000 of its ordinary shares via its share buyback program as per its announcement on the London Stock Exchange. The firm’s purchase was held on March 16, 2020. 

Its volume-weighted average price paid per share was £757.41 with overall spending at around £496,592 in the latest round. The purchase led voting rights to 107,303,454, according to the company’s recent document. 

Furthermore, the program also allowed the company to buy back up to an additional $30 million of its own shares. The firm’s previous buyback program in August 2019 held a $50 million share repurchase. 

The recent share buyback program also helped its co-founders and chief executive officer (CEO) to buy more in-company shares. Alon Gonen purchased sed 445,064 shares valued at £9.38, spending more than £4.17 million.

Omer Elazari also purchased a large fraction of the firm’s shares with more than £1.12 million worth of shares. Shlomi Weizmann purchased more than 100,000 shares on the other hand, worth approximately £941,500.

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Plus500 Expects Higher Revenue Despite the Coronavirus

Plus500 saw increased trading volumes amid the coronavirus pandemic against a drought of overall client activity. The online trading provider for CFDs anticipates seeing a significant increase in customer trading since February 28.

According to the broker, revenue from customer income was very strong, driven by heightened levels of market volatility. Gains from the company’s customer trading performance is also expected to be neutral in the coming months.

Although the year just started, especially with uncertainty regarding the pandemic, Plus500 still expects higher revenue and profitability for 2020. 

Plus500 reported heightened volumes across the global markets last month, leading to the recent uptick in customer trading activity.

Not all brokers are like this, however – analysts claim that large swings in the financial market could prove problematic. Many brokers around the world are struggling to meet customers’ demands. 

Significant events like this could lead brokers to close client positions at a negative balance. Clients have also been receiving margin calls since the first spread of COVID-19.