Why Exelixis Stock Trounced the Market on Thursday

Core Viewpoint - Exelixis has announced a new share repurchase program worth up to $500 million, which has positively impacted its stock price amidst a generally declining market [1][2]. Group 1: Share Repurchase Program - Exelixis will initiate a new share repurchase program authorized for up to$500 million before December 31, following the exhaustion of the current buyback program [2]. - The company expects the current buyback program, also capped at $500 million, to be completed in the second calendar quarter of this year [2]. - This new initiative marks Exelixis's fourth share repurchase program, with over$1.2 billion spent on buybacks through the end of 2024 [3]. Group 2: Market Reaction - Following the announcement of the new buyback program, Exelixis's shares rose by 5%, contrasting with a 1.7% decline in the S&P 500 index on the same day [1]. - Investors generally view stock repurchase announcements favorably, as they indicate management's commitment to supporting equity value [4].