Liquidity options vary and may take the form of
share repurchase programs or secondary marketplace transactions but are generally limited.
Liquidity options vary and may take the form
of share repurchase programs or secondary marketplace transactions but are generally limited.
The firm's plan also includes an up to $ 11.5 billion of common stock repurchases, compared to $ 8.3 billion
in share repurchases in the four quarters ended in the first quarter of 2017.
A CEO that is willing to push
for share repurchases when a company's stock has fallen rather than acquire another business is much more likely to create wealth than one who is bent on expanding the empire.
The company spent heavily
on share repurchases in the first quarter of 2016, at the height of the fallout from its E. coli scare.
But unlike the bias of many of today's investors, we are just as happy to see that capital returned
through share repurchase as through a large dividend payout.
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 %
Buyback yield — value of
shares repurchased by a firm divided by their outstanding shares; high values are best;
So, they being repurchasing 6 million shares each year in addition to continuing to issue their bonuses, for a
net share repurchase of 4 million shares per year.
Jim Cramer highlights
large share repurchase programs at Apple, Boeing and others in a market that's grown sour on buybacks.
HP
increased share repurchases from $ 3.51 billion in 2005 to $ 7.78 billion in 2006, and again to more than $ 9 billion a year in four of the next five years.
Some of these earnings will be needed to support organic growth, but barring a strong economy, companies will still have plenty of capital for
continued share repurchases and acquisitions.
For year - end 2010 and 2011, the analyst team also foresees more
share repurchases as well as mergers and acquisitions.
As long as that keeps happening consistently, you can anticipate seeing
more share repurchase programs from successful companies in the future.
The bank also said it will increase
share repurchases from $ 3.5 billion to up to $ 5 billion of outstanding common stock for the four quarters beginning the third calendar quarter of this year.
Assuming completion, Wolters Kluwer intends to deploy the proceeds of this divestment towards
additional share repurchases of approximately $ 150 million in 2018 and 2019 to mitigate the expected earnings dilution.
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.
A Reuters analysis shows that many companies are barreling down the same road, spending on
share repurchases at a far faster pace than they are investing in long - term growth through research and development and other forms of capital spending.
If the Institutional Imperative does reign supreme, I'm confident Zamano offers significant upside potential regardless... And if management manages to shoot the lights out & actually deliver sustained organic growth, an exceptional acquisition (& integration), an
aggressive share repurchase programme, and / or a superior bid, these are all free options on sale today.
CLX has an open -
market share repurchase authorization of up to $ 750 million, all of which was available as of June 30, 2017.
We also like that management has demonstrated good stewardship of capital through
opportunistic share repurchases (i.e., during periods when the share price was weak and trading at a discount to our estimate of intrinsic value).
Anyway, a share price retracement can often be a great opportunity to add to (or initiate) your position — and also an excellent opportunity for companies with an active
share repurchase programme.
While the board's actions to date ($ 60 billion
share repurchase over three years) may seem like a large buyback, it is simply not large enough given that Apple currently holds $ 147 billion of cash on its balance sheet, and that it will generate $ 51 billion of EBIT next year (Wall Street consensus forecast).
Firms that
completed share repurchases between 2002 and 2006, however, have not generated any better returns since that time than those who did not.
If you own shares of McDonald's, Johnson & Johnson, an S&P 500 index fund, or any other countless security, when you glance over your reports, you should know exactly why you own them — how much you expect earnings per share to rise over the next decade, management's capital allocation policies (dividends
vs. share repurchases vs. debt reduction vs. acquisitions, vs. growing organically), as well a legal and economic trends that might affect your position.
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.
At 1.7 %, the yield isn't as strong as it is for other alcohol companies, but Anderson
expects share repurchases and dividend hikes this year.
The payout ratio can also
include share repurchases, in which case the formula is: (total dividends + share buybacks) / net income.
«We believe continued
share repurchase reflects management's ongoing confidence in the business and its strong cash flow,» writes Jaffe.
«On a trailing twelve - month basis (TTM), dollar -
value share repurchases totaled $ 555.5 billion, which was approximately flat with the first quarter.»
«Dollar - value
share repurchases amounted to $ 134.4 billion over the second quarter (July), which represented a 6.9 % decline from the first quarter (April) and a 0.4 % decline year - over-year,» FactSet's Andrew Birstingl notes.
The ultimate irony is that the companies that did spend heavily on
share repurchases when capital was super-abundant may not have enough firepower to purchase shares when another bear market ensues.