Repurchasing shares increases the ownership of percentage of shareholders; it causes your stake in the company to grow.
Not exact matches
Spirit AeroSystems Reports Q1 2018 Financial Results; Announces Acquisition of Asco Industries; Plans Debt Refinancing; Announces $ 725 Million Accelerated
Share Repurchase Plan;
Increased Dividend by 20 %
The math on stock buybacks is pretty simple: by
repurchasing your own company's stock in the market you reduce the number of
shares outstanding, thereby
increasing your earnings per
share by cutting your denominator (earnings per
share is calculated by dividing income by
shares outstanding).
Guidance for the upcoming quarter was strong and the company also approved a $ 100 billion
share repurchase authorization and a 16 percent dividend
increase.
«We believe the bogey for investors is a 15 percent
increase to Apple's total reported capital return number (
shares repurchase plus past dividends), which would imply a $ 150 billion headline number, up from $ 130 billion announced last year,» said Gene Munster, an analyst at Piper Jaffray, in a recent note.
In general, the number of companies participating in
share repurchases has
increased since the U.S. recession.
As a corporation, KKR plans to pay an annualized dividend of 50 cents per common
share and
increase its authorized
share repurchase amount to $ 500 million.
Apple also
increased its dividend 15 percent to $ 3.05 a
share and said it will expand its
share repurchase program to $ 60 billion from the $ 10 billion level announced last year.
These risks and uncertainties include: Gilead's ability to achieve its anticipated full year 2018 financial results; Gilead's ability to sustain growth in revenues for its antiviral and other programs; the risk that private and public payers may be reluctant to provide, or continue to provide, coverage or reimbursement for new products, including Vosevi, Yescarta, Epclusa, Harvoni, Genvoya, Odefsey, Descovy, Biktarvy and Vemlidy ®; austerity measures in European countries that may
increase the amount of discount required on Gilead's products; an
increase in discounts, chargebacks and rebates due to ongoing contracts and future negotiations with commercial and government payers; a larger than anticipated shift in payer mix to more highly discounted payer segments and geographic regions and decreases in treatment duration; availability of funding for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations in ADAP purchases driven by federal and state grant cycles which may not mirror patient demand and may cause fluctuations in Gilead's earnings; market
share and price erosion caused by the introduction of generic versions of Viread and Truvada, an uncertain global macroeconomic environment; and potential amendments to the Affordable Care Act or other government action that could have the effect of lowering prices or reducing the number of insured patients; the possibility of unfavorable results from clinical trials involving investigational compounds; Gilead's ability to initiate clinical trials in its currently anticipated timeframes; the levels of inventory held by wholesalers and retailers which may cause fluctuations in Gilead's earnings; Kite's ability to develop and commercialize cell therapies utilizing the zinc finger nuclease technology platform and realize the benefits of the Sangamo partnership; Gilead's ability to submit new drug applications for new product candidates in the timelines currently anticipated; Gilead's ability to receive regulatory approvals in a timely manner or at all, for new and current products, including Biktarvy; Gilead's ability to successfully commercialize its products, including Biktarvy; the risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products; Gilead's ability to successfully develop its hematology / oncology and inflammation / respiratory programs; safety and efficacy data from clinical studies may not warrant further development of Gilead's product candidates, including GS - 9620 and Yescarta in combination with Pfizer's utomilumab; Gilead's ability to pay dividends or complete its
share repurchase program due to changes in its stock price, corporate or other market conditions; fluctuations in the foreign exchange rate of the U.S. dollar that may cause an unfavorable foreign currency exchange impact on Gilead's future revenues and pre-tax earnings; and other risks identified from time to time in Gilead's reports filed with the U.S. Securities and Exchange Commission (the SEC).
On April 27, 2015, Apple announced that it had expanded its capital return program to $ 200 billion, which included an
increase in its
share repurchase authorization from $ 90 billion to $ 140 billion.
Investors should want companies to reinvest in themselves and their employees versus
repurchasing their own stock to
increase the
share price, said William Lazonick, an economics professor at the University of Massachusetts, Lowell, who studies stock buybacks.
For each CEO's tenure, the researchers calculated three metrics: the country - adjusted total shareholder return (including dividends reinvested), which offsets any
increase in return that's attributable merely to an improvement in the local stock market; the industry - adjusted total shareholder return (including dividends reinvested), which offsets any
increase that results from rising fortunes in the overall industry; and change in market capitalization (adjusted for dividends,
share issues, and
share repurchases), measured in inflation - adjusted U.S. dollars.
As such, we would not expect to see a material
increase in
share repurchase activity without a significant decline in the stock price.
the Company's significant strategic accomplishments in 2011, including returning $ 5.0 billion to stockholders in the form of a 140 % common stock dividend
increase and
repurchasing 86 million common
shares, successfully completing the Wachovia merger integration, and implementing the Company's expense management and efficiency initiative; and
In 2011, we distributed $ 5.0 billion to stockholders through
share repurchases and common stock dividends, including
increasing the common stock dividend rate 140 % from 2010, and
repurchasing 86 million common
shares.
Share repurchases are part of what economists describe as the
increasing «financialization» of the U.S. corporate sector, whereby investment in financial instruments increasingly crowds out other types of investment.
Thereafter, HP may
increase its volume of opportunistic
share repurchases above that level.
A shareholder proposal by Carl Icahn of a non-binding advisory resolution that the Company commit to completing not less than $ 50 billion of
share repurchases during its 2014 fiscal year (and
increase the authorization under its capital return program accordingly)(Proposal No. 10); and
«RESOLVED, that the shareholders hereby approve, on an advisory basis, High River's proposal that Apple commit to completing not less than $ 50 billion of
share repurchases during Apple's fiscal year ending September 27, 2014 (and
increase the amount authorized for
share repurchases under its Capital Return Program accordingly).»
The reduction in outstanding
shares resulting from the stock
repurchase program
increased fiscal 2014 EPS.
Again, we expect to generate solid cash flow in fiscal 2013, which we've done consistently since we became a public company in 1995 and to use this to pay our
increased dividend and to
repurchase shares.
While we recognize and applaud the company's previously
increased share repurchase authorization, we ask you to consider our advice once again (to the benefit of all shareholders) and consider accelerating
share repurchases again via a tender offer.
A proposal by Carl Icahn of a non-binding advisory resolution that the Company commit to completing not less than $ 50 billion of
share repurchases during its 2014 fiscal year (and
increase the authorization under its capital return program accordingly)
It is our understanding that you solicited feedback from various large shareholders concerning our previous request, but we don't think anyone would deny that we were a key influence with respect to your previous decision to
increase share repurchases.
During today's second quarter earnings release, Apple said that it is launching a new
share repurchase authorization of $ 100 billion, with a 16 percent
increase in quarterly dividend.
Therefore, given the persistently excessive liquidity of $ 133 billion net cash on Apple's balance sheet, we ask you to present to the rest of the Board our request for the company to make a tender offer, which would meaningfully accelerate and
increase the magnitude of
share repurchases.
KKR expects to pay an annualized dividend of $ 0.50 per common
share as a corporation and announces an
increase in its available
share repurchase authorization to $ 500 million, effective immediately.
As a part of the stress tests, these banks must also seek regulatory approval to
increase their dividends or authorize new
share repurchase programs.
By borrowing money at less than 4 % and
repurchasing shares that the company pays 5 % on, it is
increasing current cash flows while simultaneously reducing
share count.
In addition to immediately
increasing demand for
shares,
repurchases also have long - term positive impacts on company financials.
A figure that was subsequently
increased repurchase share at prices no higher than 20 percent premium to book value.
The debt has been put to work largely in the form debt - financed merger and acquisition activity as well as
share repurchases and dividend
increases.
Management also recently announced a $ 10 billion
increase to Oracle's existing
share repurchase program.
There has been a lot of commentary around the historically high levels of
share repurchases, and if its not the
increase in stock - based compensation, what is the reason for the
increase in buyback programs?
This capital can be used to invest in new products (the company recently released its new catalog with 1,300 new products),
increase its dividend, or even continue
repurchasing shares at a discount as it has done in the past.
Apple's Board has also approved a new $ 100 billion
share repurchase authorisation and a 16 per cent
increase in our quarterly dividend, he said.
``... We look forward to the capital return program update in April, anticipating it will include a large
increase to
share repurchases,» Icahn wrote.
Because AIG sells for less than book value, each
share it
repurchases increases the book value of the remaining
shares.
We achieved moderate annual revenue
increases in Jewish Networks and Other Affinity Networks, improved Contribution margins to 74 %, cut Operating Expenses by 19 %, drove annual Adjusted EBITDA to record levels at a 28 % margin and returned capital to stockholders by using cash flow to
repurchase 21 % of the
shares outstanding at the start of 2008... we are disappointed with second half trends and in particular the fourth quarter, as revenue and subscribers decreased sequentially in each online segment.
A corporation can
repurchase issued
shares, which helps support or
increase the
share price since fewer
shares are available to meet demand.
Excess cash flows allow a company to pursue investment opportunities, make acquisitions,
repurchase shares, and pay /
increase dividends.
In Corning's 2014 annual statement they confirmed their commitment to returning cash to shareholders, citing their recent 20 % dividend
increase and $ 1.5 billion
share -
repurchase program.
Share repurchase does increase per share metrics, such as book value and earn
Share repurchase does
increase per
share metrics, such as book value and earn
share metrics, such as book value and earnings.
Through a combination of
increasing dividends and aggressive
share repurchases, Chubb's high shareholder yield allows it to give investors good returns even without core growth, and in this case, the company would have roughly doubled your money if you had invested seven years ago and reinvested all dividends.
CEOs who are busy
increasing dividends,
repurchasing shares and making acquisitions may be doing things that stroke their own egos and favor shareholders over bondholders.
The Board also approved a $ 200 million
share repurchases program and
increased the quarterly cash dividend to $ 0.06 per
share.
Invest in companies that pay consistent dividends with
increasing trend and that also at times
repurchase shares at an appropriate price.
Some analysts estimate FCF should expand at an average of 10 % annually over the next five years,
increasing Microsoft's ability to
repurchase shares and pay dividends.
There is much debate about whether companies should
increase shareholder value by
repurchasing their
shares or returning excess cash to shareholders by way of dividends.
The company
increased its dividend by 33 % and announced the start of a
share repurchase program.