Shares of Experian declined sharply on Friday, closing down 4.65% at 2,499 pence. The stock is now trading approximately 39% below its 52-week high, with trading volume reaching 5.8 million shares for the session.
Buyback Program in Focus
The credit data firm disclosed it purchased an additional 399,453 ordinary shares on February 5 at a weighted average price of 2,619.2358 pence per share. This activity is part of a new $1 billion share repurchase program announced on January 30, which the company is executing while maintaining its dividend policy and medium-term financial targets.
Sector Pressures and AI Disruption
The drop follows a volatile period for European data and software stocks, as investors assess potential disruption from artificial intelligence technologies. Analysts have noted market jitters regarding AI's impact on traditional data analytics and credit scoring models.
This week, Experian also announced the acquisition of Own Up, an AI-powered mortgage shopping platform connected to over 40 lenders. The transaction is expected to close in approximately 90 days, pending regulatory approval.
Key Events Ahead
Market participants are awaiting several catalysts in the coming days:
- U.S. January Consumer Price Index data scheduled for February 13
- Fourth-quarter 2025 results from peer TransUnion on February 12
- Bank of England speeches that could influence rate expectations
Investors continue to digest Experian's recent trading update, which maintained the company's full-year target for 8% organic revenue growth. However, analysts have highlighted challenges including foreign exchange pressures, AI-related uncertainty, and competitive shifts in credit scoring.
The company's next scheduled corporate event is the release of full-year preliminary results on May 20.