The buy‑back removes 144,952 shares from the float, shrinking the share count and therefore raising the earnings‑per‑share denominator. Assuming IPC’s net income stays unchanged, EPS will rise proportionally to the reduction in shares (≈ 0.5‑1% of the total outstanding pool, depending on the total share base). Because the market prices the stock largely on a forward P/E multiple, a higher EPS compresses the P/E – the same market‑cap now backs a slightly larger earnings figure, making the stock look cheaper on a earnings basis. In practice, the post‑repurchase P/E will fall a few basis points, nudging the valuation toward the lower‑end of its historical range and creating a modest “price‑support” floor for the next trading sessions.
From a technical standpoint, the NCIB is a classic bullish catalyst: the market often reacts with a short‑term price rally as the buy‑back demand is absorbed and the reduced supply tightens the supply‑demand balance. Given the modest size of the repurchase relative to the overall float, the move is unlikely to generate a dramatic breakout, but it can provide a catalyst for a 1‑2% upside bounce, especially if the broader market is neutral or risk‑on. Traders can look for a pull‑back to the pre‑announcement level (or the nearest resistance on the daily chart) and consider a short‑position with a tight stop just above that level, or, if the price holds above the buy‑back‑induced support, a modest long position with a target of 2–3% higher, aligning with the expected EPS uplift and the resulting valuation compression.