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.
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.
Not exact matches
This changed in 1982,
when the Securities and Exchange Commission passed rule 10b - 18, which, despite a few mechanical restrictions, opened the gates for companies to begin to
repurchase shares en masse.
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.
If the company maintains $ 120 million per year in
share repurchases, it offers investors a 4.4 % yield
when combined with Allegiant's dividend, not including special dividends.
NEW YORK —
When health insurer Humana Inc reported worse - than - expected quarterly earnings in late 2014 — including a 21 percent drop in net income — it softened the blow by immediately telling investors it would make a $ 500 million
share repurchase.
Time Warner Inc said it adjusts for buybacks «so that payouts were not advantaged» if the media company
repurchased more
shares than it initially anticipated
when setting performance goals.
This occurs
when a particular underwriter repays to the underwriters a portion of the underwriting discount received by it because the representative has
repurchased shares sold by or for the account of such underwriter in stabilizing or short covering transactions.
As mentioned before, we thank you and the Board for being receptive to us
when we last communicated our perspective regarding the company's valuation and requested more
share repurchases.
This occurs
when a particular underwriter repays to the underwriters a portion of the underwriting discount received by it because the representatives have
repurchased shares sold by or for the account of such underwriter in stabilizing or short covering transactions.
This occurs
when a particular underwriter repays to the other underwriters a portion of the underwriting discount received by it because the representatives of the underwriters have
repurchased shares sold by or for the account of that underwriter in stabilizing or short covering transactions.
«
Repurchases - is sensible [allocation of capital] for a company
when its
shares sell at a meaningful discount to conservatively calculated intrinsic value.
We look forward to future occasions
when we might
repurchase shares of these companies at favorable prices.
As a result, companies tend to do
repurchases when their
shares are expensive.
When a board of directors authorizes a
share repurchase program, it typically states either the number of
shares the company is interested in buying back or a dollar amount it will spend on its stock buyback.
Typically,
when a company announced a stock buyback program, the prospect of
repurchases boosts the
share price.
When combined with healthy, cash - generating operating results,
share repurchases can result in huge long - term rises in earnings per
share, as evidenced by companies such as Coca - Cola and The Washington Post.
This was exasperated recently
when I was discussing the case of how most investors misunderstand how it can actually be good over the long - run to change a company's capitalization structure to replace equity with debt by borrowing funds on a long - term, low - cost, fixed - rate basis to
repurchase stock, lowering the total count of outstanding
shares.
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.
When firms
repurchase shares, they destroy stock supply.
This blackout period creates windows of time
when the company is
repurchasing its own
shares alongside public investors, and a separate window
when it's just the public trading.
«Tactically,
repurchases may lift
share prices in the near term, but in our view it is a questionable use of cash at the current time
when the P / E multiple of the market is so high.»
Since a company has a lot of material non-public information around their own stock, there are blackout periods
when a company will not
repurchase its own
shares.
The company halted its
share repurchase program earlier this year
when it saw weakness in the business, but has gotten more aggressive again with the stock at these levels, shrinking the
shares substantially in only a couple months.
A stock buyback, or
repurchase, occurs
when a company buys its own
shares off the market and therefore reduces the amount of stock outstanding.
A wash sale occurs
when shares are redeemed at a loss and all or a portion of the
shares are
repurchased (including reinvested dividends) within a 61 - day period, beginning 30 days before the sale and ending 30 days after the sale.
When shares are
repurchased and not cancelled (or issued without being sold to outsiders), they may be in a trust structure for the benefit of management.
A buyback is
when a company
repurchases its stock with the goal of reducing the number of its
share on the market.
Wash sale rules prohibit claiming the loss if
shares are
repurchased within 31 days of the sale, but claiming capital losses
when available can be a great way of minimizing one's tax burden.
This is a good thing at the moment as the company has plenty of cash and is in the process of generating more (Maiden Lane III sales and potential AIA stake sale) which it hopefully will use to
repurchase shares when the Treasury next sells off some of their holdings.
When a board of directors authorizes a
share repurchase program, it typically states either the number of
shares the company is interested in buying back or a dollar amount it will spend on its stock buyback.
Berkshire will
repurchase shares when they sell for less than 120 % of book value, but not at 200 % of book value.
ii)
Share Repurchases: Why buy other companies,
when management can buy a well - known company for a far better price?
Warren Buffett prefers a company that
repurchases its
shares when they are available at a significant discount from the intrinsic value.
But
when you are presented with a
share repurchase, such as the case of Netflix, what you can do is consider whether you still believe in the company, said Stammers.
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.
There are circumstances
when a
repurchase makes good sense, but it should not be considered a mechanism to permanently boost
share prices.
When a company has excess capital from their operations, they can use that money to do several things: - Reinvest in core growth - Make acquisitions - Improve the balance sheet - Pay dividends -
Repurchase shares
If Participant's employment with Micro or any Affiliate is terminated for any reason other than death, disability... or retirement... prior to the time
when all
Shares have become Unrestricted
Shares..., Restricted
Shares... shall be
repurchased by Micro at the lower of (x) the Purchase Price and (y) the Fair Market Value of such
Shares on the
Repurchase Date.
Kimco does not have a
share repurchase program but acquired the
shares when it received an unsolicited offer to buy them.