Pushed by shareholders, US businesses spent $ 2.1 trillion
on buybacks in the last five years, according to research from HSBC.
Not exact matches
On the other end of the spectrum, Apple Inc shares rose 4.4 percent after the company late Tuesday posted resilient iPhone sales
in the face of waning global demand and promised $ 100 billion
in additional stock
buybacks.
Jim Cramer highlights large share repurchase programs at Apple, Boeing and others
in a market that's grown sour
on buybacks.
Corporate America has led the way
in passing
on the problem of its surplus capital to investors via share repurchases, with around $ 530 billion spent
on U.S.
buybacks last year and $ 800 billion expected
in 2018, according to JPMorgan.
The board has authorized an incremental $ 5 billion
in share
buybacks based
on cash flow it expects to generate with the combined business.
The company has more than $ 2 billion
in available liquidity that it can spend
on its wired and wireless networks under its Videotron division,
in expanded cable offerings, and share
buybacks, he said.
Wells Fargo at least partially blames it
on rules that prevent listed companies from conducting
buybacks in the last 30 minutes of trading — and keeps even the most liquid firms from doing it during the final 10 minutes before the close.
In addition to the vote
on the climate - impact report, Exxon holders will consider proposals to shift spending away from oil exploration to dividends and
buybacks.
The firm had taken a bearish view
on Exxon due to challenges
in its European natural gas operations, «lackluster» growth
in oil and gas production, a pricey acquisition
in U.S. shale fields and the lack of share
buybacks.
In an interview, Rendle told Fortune the company is looking for its next big deal, even as he said VF would focus
on building up its online and international businesses to spur growth, and touted a $ 5 billion share
buyback program to boost the stock.
Jim Cramer highlights share repurchase programs at Apple, Boeing and others
in a market that's grown sour
on buybacks.
Icahn also said
in the interview that he thinks one reason this is going
on is that executives are paid with stock, and they think
buybacks will boost the value of that stock.
Cramer expected a strong quarter from Waste Management when it reports
on Thursday due to its voracious share
buyback program and the boost from post-hurricane construction
in Florida and Texas.
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).
Share
buybacks executed by members of the S&P 500 rose 16 %
in the third quarter, according to data from FactSet out
on Tuesday.
In my opinion, any further delay in executing the buyback we hereby propose will reflect this lack of expertise on the boar
In my opinion, any further delay
in executing the buyback we hereby propose will reflect this lack of expertise on the boar
in executing the
buyback we hereby propose will reflect this lack of expertise
on the board.
But during this same period, a full 130 companies have spent more
on buybacks over this period than they generated
in net income.
ZURICH, April 12 - Switzerland's Sulzer has used a share
buyback to free itself from U.S. sanctions, highlighting a potential escape route for other companies controlled by Russian oligarchs targeted
in Washington's crackdown
on President Vladimir Putin's inner circle.
«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.
HSBC, Europe's largest bank, reported a set of financial results that beat estimates
in the first half of 2017 and announced a $ 2 billion share
buyback on the back of a growing capital base.
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.
The development follows a period
in which record - low interest rates have enabled companies to lever up to embark
on mergers - and - acquisitions activity and huge
buybacks.
Apple
on Tuesday announced a plan to return $ 100 billion to shareholders
in a massive stock
buyback, confirming recent optimism around tax reform.
«
On the capital front, we're also
in the middle of a (stock)
buyback program that's going at an accelerated pace.
As sellers rotated out of UnitedHealth Group's stock and into shares of Centene
on Wednesday after the latter announced its own
buyback, Cramer spotted an opportunity
in UnitedHealth.
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.
«After paying out the taxes, Apple would have $ 200bn of cash back
on - shore
in the U.S. (which it could potentially use for
buybacks, dividends, or M&A),» he wrote.
May 1 - Apple Inc
on Tuesday reported resilient iPhone sales
in the face of waning global demand and promised $ 100 billion
in additional stock
buybacks, reassuring investors that its decade - old smartphone invention had life
in it yet.
Critics point to a misallocation of capital: Money spent
on buybacks is money that isn't invested
in projects that fuel longer - term success.
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.
Other potential outcomes include a
buyback or an initial public offering, with the minimum expected return
on investment
in 3 - 5 years seven or more times the amount invested.
The Information Technology sector spent $ 35.9 billion
on share
buybacks in Q2, which was more than all other groups.
In addition, there's embedded growth within its current portfolio because it has the right of first refusal and royalty
buyback rights
on more than 30 contracts.
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...
What I hope to have happen, with Senator McCain's leadership, is a bipartisan
buyback of what's left
on sequestration, using a Simpson - Bowles formula, where Republicans will generate some revenue by closing deductions
in the tax code for the few at the expense of the many.
In its quarterly report on Tuesday, Apple said it would earmark $ 100 billion for a new share repurchase program, succeeding a $ 210 billion buyback program that started in 2012 and will wrap up this quarter - roughly nine months ahead of schedul
In its quarterly report
on Tuesday, Apple said it would earmark $ 100 billion for a new share repurchase program, succeeding a $ 210 billion
buyback program that started
in 2012 and will wrap up this quarter - roughly nine months ahead of schedul
in 2012 and will wrap up this quarter - roughly nine months ahead of schedule.
However, based
on the $ 23 billion spent
in fiscal 2013, Icahn's proposal would roughly double the pace of the
buyback.
In a Feburary, 2016 Fortune article, Apple Has Wasted Billions
on Buybacks, the author wrote (emphasis mine):
In a quarterly earnings announcement on Tuesday, the Cupertino, California - based company said it would put in place a new $ 100 billion share buyback program and increase its quarterly dividend by 16 percen
In a quarterly earnings announcement
on Tuesday, the Cupertino, California - based company said it would put
in place a new $ 100 billion share buyback program and increase its quarterly dividend by 16 percen
in place a new $ 100 billion share
buyback program and increase its quarterly dividend by 16 percent.
Moreover, the company keeps spending money it doesn't have
on acquisitions, dividends, and
buybacks, so it now sits with almost no excess cash and $ 660 million (68 % of market cap)
in combined debt and underfunded pension liabilities.
Since the financial crisis, several trends have kept it
in check, including a surge
in business models which are less asset heavy, a shift
in focus toward consumer - facing technologies, and passive investing strategies that reward companies for spending free cash
on stock
buybacks rather than capital goods.
In a call discussing Apple's earnings results
on Tuesday, CEO Tim Cook directly attributed the
buyback and dividend hike to the tax cuts.
During their earnings call
on May 1st, Apple announced a $ 100B stock
buyback program plus a 16 % dividend increase payable
in May.
With $ 50 billion
in excess cash
on the balance sheet and $ 9 billion
in annual free cash flow, ORCL has more than enough cash
on hand to support its
buyback program, and more than it could reasonably hope to invest profitably
in the near term.
The cost of
buybacks don't just come from the losses
on overpriced stock, they also come from the missed opportunities to invest
in growth and innovation.
Companies have money
on hand to invest
in their operations, but they're mostly choosing to hold that cash
on the balance sheet or
buyback stock.
Aflac also announced a 5.4 % increase
in their quarterly dividend to $ 0.39 a share and increased the size of their
buyback plan from $ 1 billion to $ 1.2 billion which I like since it shows management is being smart when it comes to buying back stock
on cheap valuations.
Steve Pakela, managing partner at Pay Governance LLC
in Pittsburgh, Pennsylvania, which advises more than 40 S&P 500 companies
on executive pay, said some directors «believe you shouldn't strip out the effect» because share
buybacks may be the best use of capital.
In fiscal 2014, spending
on buybacks and dividends surpassed the companies» combined net income for the first time outside of a recessionary period, and continued to climb for the 613 companies that have already reported for fiscal 2015.
Fewer than 20 of the S&P 500 companies disclose
in their proxies whether they exclude the impact of
buybacks on per - share metrics that determine executive pay.