Plus500 has recently continued its share buyback program. As a whole, the online trading provider has planned on repurchasing $30 million of its own shares. On Thursday, the company had announced that it had repurchased 23,000 of its own ordinary shares.

Paying Almost £300K In Shares

As per the regulatory statement that was filed to the London Stock Exchange’s (LSE) news service, the broker, based in Israel, stated that it had purchased another 23,00 of its own shares. Each of these shares, according to the statement, was done through Credit Suisse Securities (Europe) Limited, having been done on the 13th of May, 2020.

According to the statement, Plus500 had paid a volume-weighted average price, valuing each share at £12.96, or approximately $14.01. Thus, if you crunch the numbers, it can be concluded that the firm paid around £297,967.30 for the latest batch of shares, or approximately $322 102,65 in total.

Considerable Price Movements

This recent round of share buybacks saw the lowest price for a Plus500 ordinary share to be £21.87, or $13.91. The highest price that the company had paid for an ordinary share was £13.04 per share, or $14.10. These numbers stand as a stark contrast to the prices the broker had paid for its shares just months ago.

At the beginning of March, when equity prices started to crumble, Alan Gonen, the co-founder of Plus500, had managed to purchase a staggering 445,064 shares, each valued at £9.38, or $10.14. Thus, when you crunch the numbers, Gonen had forked out more than £4.17 million, or about $4.5 million, to buy the company’s shares.

When one looks at the current average price for Plus500 shares, should Gonen had tried to purchase that same amount of shares in today’s pricing, he would have to pay $5.77 million, or $6.23 million. This stands as a clear indicator that Plus500’s mission to push up its capitalization is working, actually.

Massive Volumes Fueled By COVID-19

Plus500’s share prices had, as a matter of fact, seen a consistent upwards movement ever since the 16th of March, 2020. The beginning of the rise in market prices coincided with the firm revealing that it was benefiting greatly by the volumes caused by the COVID-19 panic, which caused stocks to drop, to begin with. This was revealed via a tracking update that the company had published on the 16th of March, 2020.

Ever since, the company has seen increased and continued growth of customer trading activity ever since its last update. While stocks are low, the scramble to sell stocks to regain some capital, alongside the bullish investors buying up the cheap stocks, led to a massive increase in trading volumes for the brokerage.