Intercontinental Hotels Group Stock (IHG) Rallies on a 10,000 Share Buyback

Intercontinental Hotels Group IHG +2.22% ▲ stock rallied on Tuesday after the hotel operator revealed details of a share buyback. The company confirmed that it has repurchased 10,000 shares as part of its buyback plan. In addition to that, Intercontinental Hotels Group said that it will cancel the 10,000 shares that it has repurchased.

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Intercontinental Hotels Group bought back the shares on Monday at prices between $127.9000 and $131.1000, with an average purchase price of $129.9765. It also noted that after the transactions, the company has 150,615,211 ordinary shares issued. This excludes 5,431,782 shares held in treasury.

The repurchase of shares is a positive catalyst for IHG stock. It signals confidence in the company from leadership. Additionally, canceling the shares is another sign of confidence that has boosted investor morale today. This explains why shares of IHG were on the rise today.

Intercontinental Hotels Group Stock Climbs Today

Intercontinental Hotels Group stock was up 2.35% on Tuesday but was still down 5.09% year-to-date. The shares have also rallied 16.7% over the past 12 months.

IHG stock trading volume was low today at roughly 50,000 shares, compared to a three-month average daily trading volume of about 304,000 shares.

Is Intercontinental Hotels Group Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Intercontinental Hotels Group is Moderate Buy, based on five Buy, four Hold, and a single Sell rating over the past three months. With that comes an average IHG stock price target of $146.33, representing a potential 9.18% upside for the shares.

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