The telecom company continued to show solid share - net growth in the December quarter, supported
by stock buybacks, good cost management, wireless margin improvement, and increased penetration of U-verse, its broadband, video, and IP telephone service.
Not exact matches
United has tried to placate shareholders, recently doubling its forecast for
stock buybacks in the first quarter to $ 1.5 billion, and expanding its board
by three new directors last Monday.
Porat won more investor goodwill in October 2015
by announcing a $ 5.1 billion
stock buyback.
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).
According to research
by HSBC,
buybacks have been the largest source of net demand for the
stock market since 2009.
Buyback proponents say they reward these long - term shareholders
by effectively increasing their ownership of the company, and they help boost the value of a
stock by raising the company's earnings per share.
«There's no question that
by far corporate
buyback have been the source of most of the buying in the
stock market,» Sonders told Business Insider on Wednesday.
The company also approved a new $ 40 billion share
buyback program, reaffirming it's on track to complete its current $ 40 billion
stock repurchase program
by December 31.
GM's
stock has dropped
by 19 % despite an announced $ 9 billion of share
buybacks.
Buoyed
by an unquenchable thirst for short - term
stock gains, traders and activist investors are mounting pressure on a wide array of companies to cut research and capital expenditures in order to increase
stock buybacks and thus boost
stock prices.
Analysts typically measure whether companies beat or missed their earnings based on earnings per share, which can be manipulated
by corporate
stock buybacks.
Meanwhile, the automaker increased its
stock buyback program
by $ 4 billion, bringing it to a total of $ 9 billion.
The bank's profits dropped 3.1 %, to $ 5.4 billion from $ 5.6 billion, with that difference in net income due to legal expenses, debt charges and $ 15 billion in
stock buybacks that reduced the bank's outstanding shares
by 4 %.
By providing a lift to a
stock's price,
buybacks can increase total shareholder return to target levels, resulting in more
stock awards for executives.
If management wanted to, they could take advantage of OCLR's cheap
stock price
by enacting a significant
buyback program.
Lately, the sheer volume of
buybacks has prompted complaints among academics, politicians and investors that massive
stock repurchases are stifling innovation and hurting U.S. competitiveness — and contributing to widening income inequality
by rewarding executives with ever higher pay, often divorced from a company's underlying performance.
Despite some investors waxing rhapsodic about things like «mass collaboration and sharing enabled
by technology and global communications networks,» S&P 500 Index revenues have grown at a nominal rate of just 3.2 % annually over the past 20 years, and just 1.6 % annually over the past decade, and that includes the benefit of
stock buybacks.
The road to outstanding
stock price performance has been paved
by multiple earnings surprises, share
buyback announcements, stimulating monetary conditions, economic growth and lifted investor sentiment.
Since then, the
stock has risen
by 27 % on the back of strong earnings and a $ 10 million
buyback announcement.
Share
buybacks are positive for reported earnings per share, but this is partially offset
by the growing popularity of granting
stock options to executives in lieu of cash bonuses.
If instead we use total expenditures on dividends plus net
stock buyback cash plus change in total debt divided
by market capitalization, we don't need to worry about changes in share count due to
stock splits.
The book is a series of case studies that describes how a small number of CEOs have used cash generative businesses as platforms to drive massive returns for shareholders
by directing excess cash opportunistically between large
stock buybacks, special dividends and acquisitions of other businesses.
As for
stock buybacks, more than $ 136 billion was repurchased
by S&P 500 companies in the fourth quarter, an increase of 5.2 percent year - over-year.
And in terms of what businesses planned to do with any profit returned from abroad, a Bank of America Merrill Lynch survey of more than 300 CEOs found that paying down debt and
stock buybacks were
by far and away the biggest priorities for businesses.
--
Buybacks, which boost
stock prices
by making shares scarcer, have exploded in 2018 thanks to the huge windfall created
by President Trump's new tax law.
Keeping to that promise, Qualcomm raised its dividend
by 14 % on Monday and announced a new $ 10 billion
stock buyback.
The reform package's rule regarding the repatriation of overseas cash could benefit investors
by leading to rising dividends and
stock buybacks, they said.
All
stocks are held in the expectation that they will eventually return money to whoever is holding the shares at the time,
by one or more of the following mechanisms: Paying dividends Share
buybacks, where the company buys out some of its own shares (in some ways this is quite similar to paying a dividend, but often has different tax implications) A...
The net payout yield goal for the strategy is 8 %, defined
by the amount a company spends on
stock buybacks and dividends as a percentage of its
stock price (adjusted for the amount a company receives for issuing new
stock).
The company sees that the
stock is attractively valued and has decided to take advantage of that
by announcing the acceleration of share
buybacks.
The simple answer in my opinion is lack of alternatives, especially for long - term investors such as endowment and pension funds, which has created a surge in demand for
stocks at the same time that the supply of
stocks is dwindling due to the aggressive
buyback programs instituted
by corporations in recent years.
A good place to start is this list of the best
stocks for total shareholder return (dividends plus
buybacks) which was prepared
by Goldman Sachs, and some of the returns on this list are pretty impressive.
One explanation:
Buybacks are driven less
by companies» belief that their shares are undervalued and more
by a desire to offset the dilution caused
by employees exercising
stock options.
There are comparative advantages and disadvantages for dividends and
buybacks, which are never discussed
by G&D, because they only mention the
stock buyback alternative as it relates to
stock options for management.
There is no discussion
by G&D of
stock buybacks as a method of enhancing a common
stock's market price over the long run, giving the management the flexibility to retain cash in troubled times, and also increasing the percentage ownership interest of each non-selling stockholder.
Price has a
stock buyback program, but its beneficial effects are muted
by its heavy use of share options as compensation and bonuses.
A large portion of
stock buybacks only sop up new shares issued
by the company to employees exercising
stock options.
The share
buyback to repurchase $ 2M of its
stock will increase the per share liquidation value
by around 6 % to $ 1.64.
The impact of a $ 2M
stock buyback at Friday's closing price is to increase per share liquidation value
by around 6 % to $ 1.64 and leaves the company with $ 26.3 M in cash and short term investments.
Analyze the use of cash flow
by management, to avoid companies that invest or buy back their
stock when it dilutes value, and purchase those that enhance value through intelligent
buybacks and investment.
The Underlying Index, created
by Dhandho, utilizes a proprietary, rules - based methodology to select approximately 100 U.S. equity securities, master limited partnerships («MLPs») and American depositary receipts listed on the NYSE, NYSE Arca and the NASDAQ
Stock Market from three categories of issuers: Share
Buybacks, Select Value Manager Holdings, and Spin - Offs.
The
buyback program is hampered
by their listing apparently — where on A'dam
stock exchange you can only buy back x % of daily volume — which is naturally low.
In my mind, the
stock was completely neglected, the far higher NAV was also being ignored
by investors, and there was a fair chance further share
buybacks might actually prompt investor selling, based on an increasing inside ownership stake.
-- to
buyback shares to cover up the consequences of their previous poor decisions and / or prop up a sagging
stock price (perhaps now targeted
by short sellers).
Outerwall hasn't been liquidating itself through
buybacks — instead it has leveraged the balance sheet
by issuing large amounts of debt, using the proceeds to buy back
stock, which has reduced the share count, but not the size of the balance sheet or the amount of capital employed.
Most of the people here are talking about buying an index fund or funds, so there's no real way that
stock buybacks by individual companies are going to be a very useful indicator of much of anything in that context.
Another demonstration of poor capital allocation
by management is its
stock buyback history.
If the
buyback had been completed at the current
stock price, the company's per share liquidation value would have increased
by around 17 % to $ 6.72.
A blog
by Todd Wenning about dividend
stocks, portfolio management, behavioral finance,
buybacks, and a patient approach to investing.
A study of analyst recommendations at the major brokerages shows that Monster Beverage Corp is the # 43 broker analyst pick among those
stocks screened
by The Online Investor for strong
stock buyback activity.