I think there would
more stock buybacks.
I think there would
more stock buybacks.
Not exact matches
Perhaps most troubling about
buybacks» disappearing act this past week is that share losses should've theoretically made them
more attractive to companies whose
stocks were trading lower.
Porat won
more investor goodwill in October 2015 by announcing a $ 5.1 billion
stock buyback.
Alternatively, it is possible that managers whose compensation is tightly linked to
stock performance become
more aware of
buyback's positive announcement effects in recent years and use
buyback announcements to boost up
stock prices for their own benefits.
Buybacks, said Aguilar, are done because that's the way companies think they can get the best return on their investment, so with a
more volatile
stock market and harder access to credit, spending cash on long - term growth becomes the best option.
The last time multinational companies repatriated cash — also during the last Bush presidency — a bipartisan Senate investigation later found that those same companies actually shipped even
more jobs overseas, while paying their shareholders billions through
buybacks of their own
stock.
Since 2012, when the company launched the largest share repurchase program ever, Apple has returned a little
more than $ 100 billion to shareholders in
stock buybacks and dividends.
The tax cut and excess federal spending may boost some areas of the economy, but thus far, it has not produced anything
more than a modest boost in capital spending (most of it from capital intensive technology companies) but a surge in
stock buybacks and dividend increases, Apple being a case in point.
He announced an aggressive
stock buyback a few months after opposing such a move, provided
more details on the 40/20/10 plan first mentioned in June, and recentralized innovation efforts under one executive.
Apple
stock traded up
more than 1.8 percent Monday to $ 165.26 per share, ahead of its Tuesday afternoon earnings and amid chatter that it could announce a big
stock buyback.
With
stocks in general still trading so high, investors are best off ignoring the short - term hype around
buyback announcements and instead taking a closer look at companies on repurchasing binges to see if their share prices have
more room to run.
Companies in the S&P 500 are on track to give investors
more than $ 1 trillion in
stock buybacks and dividend increases this year, according to Howard Silverblatt, a senior analyst at S&P Dow...
Icahn has been saying the
stock is undervalued and pushing for
more buybacks.
And although the company announced a record
stock buyback program earlier this year, Icahn would like to see it increased even
more.
Financially parasitized companies use corporate income to buy back their
stock to support its price — and hence, the value of
stock options that financial managers give themselves — and borrow yet
more money for
stock buybacks or simply to pay out as dividends.
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.
A
stock buyback is basically a secondary offering in reverse — instead of selling new shares of
stock to the public to put
more cash on the corporate balance sheet, a cash - rich company expends some of its own funds on buying shares of
stock from the public.
Instead of stimulating investment in the real economy, low interest rates have fueled
stock buybacks, M&A, and financial engineering
more generally.
Also, with their huge FCF they can maybe pay down debt faster, acquire other companies to keep growing, pay
more dividends, or
buyback their
stock.
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.
Perhaps
more interesting is how the market is starting to treat the
stocks of companies that spend
more on capital expenditures rather than
buybacks and dividends.
I agree that
buybacks at a high valuation are likely foolish, but increasing the attractiveness of the
stock to those focused on the immediate payback would seem to make acquiring
more shares at a good price
more difficult.
FPI joined the rally, where ordinary tax payers, elected officials, community organizations and labor unions called for a 0.5 % New York State tax on
stock buyback trades, which would mean corporations using their federal tax cuts simply to benefit their shareholders would have to pay a small New York State tax on... (read
more)
«Online Dating Has
More Singles Clicking Main Spark Networks Establishes Open Market
Stock Buyback Program Of Up To 1,000,000 Shares»
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...
This relief is limited, however, for companies that pay
more than $ 1 million in compensation to any of their employees, or provide extraordinary dividends or
stock buybacks.
It is important to note that while
stock buybacks have a mild effect on the real economy, they tend to have a much
more direct and positive effect on the financial economy.
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.
Learning how to control your lizard brain (amygdala), and understand how the pain of losses (risk aversion) can distort decision making processes can help you
more clearly see how record profits (see chart below), share
buybacks, M&A activity, and limited
stock issuance (i.e. IPOs) will impact
stock prices.
Maybe a
more potent question is what about companies doing
stock buyback right now, causing all - time highs in
stock prices.
Companies tend to sell
stock when it is advantageous; IPOs happen
more frequently when valuations are high, and
buybacks happen
more frequently when valuations are low.
Going to something
more mundane, Mark Hulbert points out some research showing that companies that
buyback their
stock outperform the market.
Meanwhile, the Federal Reserve's upcoming directional shift will make it
more expensive to borrow new money in the bond market, hampering
stock buybacks as cash flow from sales continues to decline.
A non-perpetual
stock has a particular
buyback price and
buyback date, usually 30 or
more years from the date of issue.
Obviously with tech companies and their cash holdings, their approaches to
stock comp /
buybacks / repatriation / capex through acquisition etc have to be borne in mind, and how much of it is effectively working capital in one form or another — but it occurred to me that there are a few companies out there where cash balances could make a material difference to valuation (even
more so than picking the right multiples with some!)
Finally, U.S. equities have benefited from a record amount of share
buybacks representing over six times
more stock purchased than ETF and mutual fund inflows, according to Bloomberg.
As to your desire to see share
buybacks included in market indices, I believe that
buyback information would be much
more useful to buyers of individual
stocks.
The side benefit of an exercise like this to a corporation is that it will understand its cost of capital well, and will be all the
more able to make intelligent decisions on mergers and acquisitions,
stock buybacks and issuance.
Nearly $ 200MM was spent to repurchase far
more expensive IMN shares prior to 2008 while a pittance of IMN capital has been deployed to
buyback shares when the
stock is trading for less than its net cash value.
This is where the theory and reality diverge: The majority of companies that don't pay out a significant portion of cash flows in dividends (or
stock buybacks, though I place
more value on dividends, as
stock buybacks could be postponed)
more often than not end up destroying shareholder wealth in empire - building acquisitions or marginal capital investments (if they had better investments to begin with they would spend cash right away).