TRI

What is the timeline for the normal course issuer bid (NCIB) and how quickly can the market expect to see execution?

Created August 15, 2025 at 10:34 AM

Timeline and execution speed

Thomson Reuters has opened a new Normal Course Issuer Bid (NCIB) that runs for up to 12 months – the standard maximum period allowed under Canadian securities rules. Within that window the company can buy shares on a daily basis, subject to a 1 % of free‑float cap per day (the usual NCIB limit). Because the program is a “normal‑course” bid rather than a accelerated‑‑or‑“open‑market” buy‑back, the company will not be forced to move the entire $1 billion allocation immediately; instead it will accumulate purchases over the year, pacing them to market conditions and available liquidity.

What to expect in the short term

Given the 1 % daily cap and the size of TRI’s free‑float (roughly 200 million shares), the maximum daily volume the issuer can absorb is about 2 million shares. In a typical, moderately liquid U.S.‑/Canadian‑listed stock, that translates to a few hundred thousand to 1 million shares per day in practice, especially when the market is calm. Consequently, most of the buy‑back will be executed gradually over weeks to months rather than in a single burst. Traders can therefore anticipate a steady, upward pressure on the price as the NCIB proceeds, with the most noticeable impact occurring when the company hits its quarterly or semi‑annual purchase milestones (e.g., $100‑$200 million blocks).

Actionable take‑away

Short‑term: Expect modest, incremental price support as daily purchases roll out. Look for a tightening of the bid‑ask spread and modest upside in the next 4‑8 weeks, especially if the market absorbs the daily caps without significant resistance.
Medium‑term: As the NCIB progresses toward the 12‑month horizon, cumulative buying could become a visible catalyst for a mid‑term rally; watch for price‑level clusters around the $70‑$75 range (current levels) where the company may accelerate purchases to meet its $1 billion target.
Risk: If the stock experiences heightened volatility or a sharp down‑trend, the issuer may pause or slow purchases, temporarily dampening the upward bias.

In short, the NCIB will run for up to a year, with daily execution limited to roughly 1 % of free float. The market can therefore expect gradual, sustained buying pressure rather than an immediate, large‑scale execution—providing a clear, but measured, upside catalyst for TRI’s equity over the coming months.

Other Questions About This News

How will the $1.0 billion share repurchase program affect TRI's earnings per share (EPS) and valuation multiples? What is the expected impact of the buyback on TRI's stock price in the short term and medium term? How does this repurchase size compare to recent buyback programs by peer companies in the content and technology sector? Will the share repurchase materially affect TRI's cash reserves or leverage ratios, and what are the implications for future capital allocation? Is the buyback being used to offset dilution from recent equity issuances or stock‑based compensation? What signals does the $1 billion repurchase send about management’s confidence in the company's growth prospects? How might the repurchase influence analyst coverage, target price revisions, and overall market sentiment toward TRI? Are there any tax or regulatory considerations that could affect the net benefit of the buyback to shareholders? What is the potential impact on liquidity and float, and could this lead to higher price volatility post‑announcement?