Proactive Investors - J Sainsbury PLC (LSE:LON:SBRY) on Friday announced the latest tranche of its £200 million share buyback scheme had commenced.
The final £50 million worth of shares would be bought back by February 24, a statement said.
Some 54,797,296 ordinary shares collectively worth £150 million had been repurchased as of last month, following the announcement of the buyback in April, Sainsbury’s added.
Shore Capital analysts noted Sainsbury’s remained “very attractive” in the wake of the news, highlighting a free cash flow-funded 5% dividend yield.
“All in, more good work from Sainsbury’s,” Shore Cap said in a note.
“[It’s] a stock that we believe offers considerable value at present levels noting what we believe are good fundamental economics for the UK grocers, including the perpetuation of manageable grocery inflation post the Budget.”
Shares climbed by 3.2% on Friday.