ADRO Plans Share Buyback, Will Share Price Rise?
PT Alamtri Resources Indonesia Tbk (ADRO) is once again planning to repurchase its own shares (buyback), coinciding with gains in its share price throughout 2026. The question remains: does ADRO stock still hold potential for further appreciation?
At the close of trading on Friday, 13 March 2026, ADRO shares were trading at Rp 2,480 per share, down 20 points or 0.80% from the previous day. However, calculated from the beginning of 2026, the share price has appreciated by 660 points or approximately 36.26%.
ADRO management plans to execute a share buyback with a maximum value of Rp 4 trillion, or no more than 10% of total issued capital.
To implement this plan, ADRO will hold an Extraordinary General Meeting of Shareholders (RUPSLB) on 17 April 2026. If the plan receives approval, the buyback will commence on 20 April 2026 and will be carried out in stages through the Indonesia Stock Exchange over a maximum period of 12 months.
ADRO management believes that the share buyback can enhance trading liquidity and allow share prices to more accurately reflect the company’s fundamental value. Additionally, this measure is expected to strengthen investor confidence.
ADRO assures that the implementation of this buyback will not negatively impact the company’s financial performance, as the company has adequate retained earnings and cash flow.
ADRO is known as one of the issuers quite active in conducting share buybacks. During the period 16 May – 2 June 2025, ADRO repurchased approximately 33 million shares, equivalent to 0.11% of total outstanding shares.
Subsequently, during the period 3 June 2025 to 28 February 2026, ADRO again carried out a buyback of 556.19 million shares, or approximately 1.89% of issued capital.
Muhammad Wafi, Head of Research at Korea Investment & Securities Indonesia, believes that the frequency of these buybacks indicates that ADRO management views the company’s shares as still undervalued.
“Buybacks also provide positive sentiment and help prevent the risk of share price decline,” he said.
However, Wafi also cautioned that the use of internal cash for buyback still carries risk, as it can reduce the company’s financial flexibility for expansion needs and business diversification into the green energy sector.
Regarding ADRO share recommendations, Muhammad Wafi recommends ADRO shares with a target price of Rp 2,800 per share. Meanwhile, Senior Market Analyst at Mirae Asset Securities, Nafan Aji Gusta, gives a hold recommendation with a target price of Rp 2,550 per share. Nafan Aji Gusta believes that the use of cash for buyback needs to be managed carefully so as not to disrupt the company’s operational and investment needs.