Rightly so,
stock buyback announcements are seen as a good thing.
First, the dollar value of U.S.
stock buyback announcements has registered a five - year low.
But shareholder primacy isn't a new phenomenon: Birinyi Associates, a market research firm, has tracked $ 9.9 trillion in
stock buyback announcements since 1984.
Not exact matches
Apple's shares gained 1.6 % in after - hours trading following the company's earnings release that included an
announcement that it plans to expand increase its dividend and
stock buyback plan yet again.
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.
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.
The surge came on the heels of the company's
announcement that it approved a $ 2.5 billion
stock buyback program.
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.
The company traditionally makes a dividend increase
announcement at this time of year, and some believe that some of the billions in repatriated cash could go back to investors in the form of dividends or
stock buybacks.
Since then, the
stock has risen by 27 % on the back of strong earnings and a $ 10 million
buyback announcement.
As the first quarter earnings
announcements wind down, new dividend increases, plus
stock buybacks and new acquisitions have put a strong foundation under many
stocks.
Investors that were waiting for Apple's
announcement this week weren't disappointed — the consumer electronics behemoth announced a 16 % dividend increase and a $ 100 billion
stock buyback.
* Previous
buyback completion rates matter, which shows that
stocks with high completion rates but low
stock returns following previous
buybacks enjoy abnormally large returns following a subsequent
buyback announcement.
Stocks with high completion rates but low
stock returns following previous
buybacks enjoy abnormally large returns following a subsequent
buyback announcement.
Next she shows that the
stock returns to a company making a
buyback announcement are much higher for those with high past completion rates.