tiprankstipranks
Advertisement
Advertisement

Pearson Cancels 205,000 Shares in Ongoing £350 Million Buyback

Story Highlights
  • Pearson repurchased and will cancel 205,018 shares at an average 1,062.99p.
  • The buyback is part of a £350m programme, reinforcing shareholder returns and capital discipline.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Pearson Cancels 205,000 Shares in Ongoing £350 Million Buyback

Meet Samuel – Your Personal Investing Prophet

The latest update is out from Pearson ( (GB:PSON) ).

Pearson has repurchased 205,018 of its ordinary shares on the London Stock Exchange, at an average price of 1,062.99 pence per share, with the shares to be cancelled. The transaction, executed via Morgan Stanley across multiple venues, forms part of the second £175 million tranche of Pearson’s £350 million share buyback programme, underscoring continued capital returns to shareholders and a reduction in the company’s share count.

By cancelling the repurchased shares, Pearson effectively increases the ownership percentage of remaining investors and may enhance earnings per share over time. The ongoing buyback programme signals management’s confidence in the group’s financial position and cash-generation capacity, aligning with broader shareholder value strategies commonly seen among large UK-listed corporates.

The most recent analyst rating on (GB:PSON) stock is a Buy with a £1430.00 price target. To see the full list of analyst forecasts on Pearson stock, see the GB:PSON Stock Forecast page.

Spark’s Take on PSON Stock

According to Spark, TipRanks’ AI Analyst, PSON is a Neutral.

The score is driven primarily by steady but not accelerating fundamentals—strong operating profitability offset by low growth, weaker net margin, rising leverage, and softer 2025 free cash flow. Earnings call guidance adds support via clear mid-single-digit growth and profit/cash-conversion targets, while technicals remain a headwind with the stock below key longer-term moving averages and negative MACD. Valuation is reasonable with a mid-teens/high-teens P/E and a ~2.5% dividend yield.

To see Spark’s full report on PSON stock, click here.

More about Pearson

Pearson plc is a UK-based education and publishing company that provides learning materials, digital education platforms and assessment services. The group focuses on global education markets, serving schools, higher education, professional and vocational learners with a growing emphasis on digital and direct-to-consumer offerings.

Average Trading Volume: 2,702,320

Technical Sentiment Signal: Buy

Current Market Cap: £6.39B

See more data about PSON stock on TipRanks’ Stock Analysis page.

Disclaimer & DisclosureReport an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1