HTC lost 3.97 percent to end at NT$871 per share after plummeting more than 6 percent in morning trade.
Yesterday marked the first trading session after HTC lost an initial U.S. court ruling on a patent complaint to Apple Inc. Friday.
HTC said the following day that it will purchase up to 20 million of its own shares in two separate periods between July 18-Aug. 17, and Aug. 18-Sept. 17.
Separately, foreign and local institutional investors have expressed mixed views on HTC's future stock performance.
Back when HTC purchased S3, the 3D imaging subsidiary of Via, Citigroup Global Markets analyst Chang Kai-wei had lowered HTC's rating to “sell” and its target price to NT$927. With the court's initial ruling last Friday, Chang has maintained his rating and target price of the firm.
Morgan Stanley, meanwhile, expressed the view that HTC's shares buyback plan indicates the firm is confident about its appeal in the case. However, the overall effects of the buyback plan remain to be seen.
According to Morgan Stanley, the litigation may force HTC to find other software solutions that do not infringe on Apple's patents. While the move might help HTC minimize risk, it will come with higher cost pressures and may affect its performance for 2012, said Morgan Stanley, which maintained its “overweight” rating for HTC and target price of NT$1,100.
UBS, meanwhile, has kept its “outperform” rating for HTC and its target price of NT$1,100. Macquarie, on the other hand, has a “neutral” rating for HTC and gives a target price of NT$1,140.
Taiwan's institutional investors, meanwhile, are more conservative about HTC and urged investors to focus more on the firm's future efforts to sell 4G handsets and expand in China. At the same time, HTC's stronger emphasis on patents may increase its costs, which may be reflected in its prices, analysts said.
Capital Securities has given HTC a “buy” rating and has slashed its target price for HTC to NT$1,120.
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