Molly Schuetz (Bloomberg) -- Intel Corp. said it’s suspending stock repurchases due to the impact of the Covid-19 pandemic.
The chipmaker said the suspension, “while conservative, is prudent given uncertainty regarding the length and severity of the pandemic.”
The Santa Clara, California-based company joins a growing list of businesses suspending stock buybacks as economic activity slows around the world and stockpiling cash becomes the priority.
Intel said it has been able to keep its factories operational while safeguarding the health and safety of employees and continues to have a strong balance sheet. The suspension of stock repurchases won’t impact dividend payments, and Intel can reinstate repurchases as circumstances warrant, it said in a filing to the U.S. Securities and Exchange Commission on Tuesday.
Last October, Intel announced its intention to repurchase $20 billion in shares over the next 15 to 18 months. The company repurchased about $7.6 billion in shares in the fourth quarter of 2019 and first quarter of 2020, prior to the suspension.