Deutsche Telekom has announced the initiation of an ambitious share buyback program, marking a significant start to 2025. The telecommunications giant plans to repurchase shares worth up to 550 million euros between January 3 and April 4, 2025, representing the first phase of a comprehensive 2 billion euro buyback initiative announced in October. The majority of the repurchased shares are slated for cancellation, with a smaller portion allocated for compensation programs. The market responded favorably to this announcement, with the stock climbing 0.7 percent to reach 29.38 euros, demonstrating investor confidence in the company's strategic direction.
Market Position and Outlook
The timing of this buyback program appears strategically sound, following a slight correction from December's peak of nearly 31 euros - the highest level since 2001. With a market capitalization of 146.3 billion euros, Deutsche Telekom maintains its position as a heavyweight in the German DAX index. The stock has shown resilience at the start of the year, successfully crossing above its 50-day moving average, indicating sustained market strength.
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