Samsung Electronics stock fell 9% after the company revealed a shareholder return plan that left many investors underwhelmed.
Samsung Electronics stock dropped 9% on Monday after the company announced a shareholder return package for 2026. The plan expects shareholder returns to total between 90 trillion won and 110 trillion won, which the company described as the largest ever by a Korean company. While the announcement follows a significant 40 trillion won share buyback by domestic rival SK Hynix, many investors were disappointed by the lack of an aggressive buyback commitment. Shareholders expressed a desire for clearer guidance on how the company will deploy its remaining capital. Samsung Electronics has been working to catch up with SK Hynix in high-bandwidth memory chips for AI systems. The company previously pledged to return 50% of its free cash flow between 2024 and 2026. It also announced a30 trillion won in cash dividends for the third quarter, with final details to be decided at a board meeting in late October.
Sources
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Samsung Electronics shares skid as record shareholder returns disappoint
Reuters
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Samsung Electronics stock sank after its record shareholder return plan fell short
qz.com
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Samsung to return record $80bn to shareholders
Financial Times
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Samsung Electronics stock had its worst day in three weeks, and the other memory stocks are lower as well
MarketWatch
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Samsung plans up to $80 billion in shareholder returns after SK Hynix buyback
CNBC