TLDRs:
- RELX shares gain 0.8% following latest buyback, signaling investor confidence.
- Company purchased over 313,000 shares, adding to ongoing treasury repurchases.
- Defensive subscription revenue helps RELX outperform FTSE 100 amid market drop.
- Investors weigh growth prospects as February earnings release approaches.
RELX (REL.L) rose 0.8% to 3,103 pence in early London trading on Wednesday, buoyed by news of a fresh round of share repurchases.
The stock fluctuated between 3,089 and 3,117 pence, maintaining a level roughly 25% below its 52-week high of 4,205 pence.
Investors have been closely following RELX’s buyback activity, viewing it as a signal of confidence from management while providing short-term support to the stock. The company has long been regarded as a defensive holding in the UK market, thanks to its recurring subscription-based revenue from legal, risk, and scientific information services.
Treasury Shares Purchased
On January 6, RELX announced it had acquired 313,411 shares at an average price of 3,063.96 pence, with trades ranging from 3,037 to 3,086 pence. This latest purchase adds to the 959,364 shares bought since January 2, bringing the company’s total treasury holdings to 5,067,236 shares.
Share buybacks reduce the total number of shares outstanding, which can enhance earnings per share and signal a preference for returning cash to shareholders rather than letting it accumulate on the balance sheet. Analysts note that these measures, while providing immediate support, do not replace the need for sustainable revenue and margin growth.
Outperforming the Broader Market
While the FTSE 100 slipped 0.5% to 10,074 in early trading, down slightly from its record 10,123 close the previous day, RELX’s stock held up better than the broader index. Earlier in the week, the company had already seen a 3.6% increase, reaching 30.90 pounds, outperforming the wider market.
Trading volume for the stock remained relatively subdued at 2.2 million shares, well below the 50-day average of roughly 5.1 million. Nevertheless, the steady buyback activity has helped provide a degree of price stability in a market otherwise experiencing modest declines.
Growth and Earnings in Focus
Despite the near-term support provided by buybacks, investors remain focused on RELX’s upcoming earnings release scheduled for February 12. The key question for the market is whether the company can sustain growth and maintain pricing power as clients continue to scrutinize budgets. Any shortfall in renewals or margin compression could overshadow the positive impact of share repurchases.
For now, the combination of defensive revenue streams and ongoing buybacks is giving investors a level of confidence that RELX can weather daily market volatility. Analysts continue to monitor subscription trends and cost management measures as critical indicators of the company’s longer-term performance.
Summary
RELX’s share price has found short-term support thanks to ongoing buybacks, rising 0.8% in early London trading. While the defensive nature of its subscription revenue helps the stock outperform the broader market, investors are keeping a close eye on February earnings to assess sustainable growth and margin stability.
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