London, Jan 10, 2026, 09:09 GMT — Market closed
- Prudential announced additional share buybacks as part of its new 2026 repurchase program
- On Friday, JPMorgan raised its target price for the insurer and maintained an overweight rating
- Investors are turning their attention to inflation data and Prudential’s March earnings as the next key drivers
Prudential plc announced on Friday that it repurchased 331,277 shares at an average price of 1,160.85 pence as part of its ongoing buyback program. The insurer confirmed it will cancel these shares, reducing the total shares outstanding to 2,547,238,783.
Buybacks, where a company repurchases and cancels its own shares, reduce the share count and can boost earnings per share. Prudential announced a programme of up to $1.2 billion — roughly 3% of issued share capital as of the Jan. 5 close. This breaks down into $500 million of recurring capital returns and $700 million from the IPO of ICICI Prudential Asset Management. The company said the buyback pace will depend on market conditions. Chief Executive Anil Wadhwani said he was “pleased with the progress we are making in executing our strategy.” 1
JPMorgan Cazenove raised its target price to 1,500 pence from 1,325 pence on Friday, maintaining an “overweight” rating, signaling expectations for the shares to outperform. The bank pointed to a “positive fundamental investment thesis” and noted Prudential’s partial sale of its stake in ICICI Prudential Asset Management, following an almost 80% gain in 2025. 2
Prudential shares ended Friday at 1,160.5 pence, unchanged on the day but down roughly 1.5% from Monday’s close. Over the past year, the stock has ranged from 595.2 pence to a peak of 1,213.0 pence, sitting about 4% below that recent high.
With London closed for the weekend, traders will be keen to see if the buyback continues to absorb shares when trading picks up again Monday, and whether the stock can claw back toward this week’s highs. New updates on capital returns usually shake things up quickly, even if daily price moves appear sluggish.
Macro factors could take the lead: U.S. consumer price index (CPI) data for December, a crucial inflation indicator, drops on Jan. 13, followed by UK CPI figures for December on Jan. 21. These reports often jolt bond yields, directly impacting insurer valuations.
Buybacks don’t shield stocks from shifts in rate expectations or appetite for risk in Asia, particularly early in the year when liquidity tends to be tight. When markets turn volatile, investors often shift attention away from capital returns and zero in on underlying business performance and cash flow.
Prudential’s final results drop on March 19, with investors keen to hear about buyback pace, capital generation, and any fresh guidance on returns. 3
