The automaker plans to make the purchases over a 10-month period beginning after its shareholder meeting in June.
It's the first buyback program for Toyota since 2009.
Analysts are quick to note that although buyback amount from Toyota is large, there is still enough cash piling up to fund more aggressive buybacks or capital investments. The action could have a calming effect on shares and set them up for more gains, note industry watchers.
TM +2.4% premarket