Sentences with phrase «stock buybacks do»

But the firm's research indicates that stock buybacks do not change investors» estimates for long - term earnings - per - share growth, or induce them to accord a company a higher valuation multiple.

«But if you look at hundreds of examples, you find that stock buybacks do increase long - term value.»

Not exact matches

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.

No company has ever done stock buybacks like Apple.

Apple's stock buyback program isn't just bigger than those of other companies, it's also better at doing what investors want share repurchases to do.

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.

Thanks to hefty stock buybacks, earnings per share did even better, increasing 350 percent.

«I'm amazed at how many CFOs don't truly understand the long - term sustainability and value creation of stock buybacks.»

«I would hope that with their big advantage of bringing money home at a very low rate that they would invest in infrastructure and things, but our experience has been that they will do dividends, they will do stock buybacks, and things like that,» she said.

If instead we use total expenditures on dividends plus net stock buyback cash plus change in total debt divided by market capitalization, we don't need to worry about changes in share count due to stock splits.

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.

«Although buybacks do not represent an optimal use of cash at the current time, they will be positive for near - term stock performance,» the note said.

Or, at least, it did until Harry Wilson got his Wall Street cronies to force GM into a $ 5 billion stock buyback.

The management has wisely bought back shares of the stock at severely depressed levels, and doesn't seem to get too carried away with regular buybacks, preferring to return excess cash to shareholders in the form of special dividends (much preferred to buybacks).

A reason to complain about buybacks is that the company is overpaying for the shares and / or doing it to offset share dilution from stock options.

Do a share buyback, which should increase the stock price over time.

I do think they've added some value to L, but you're right, if you're buying back stock of an underlying business that is not creating (or worse, destroying) value, then the buybacks themselves aren't creating value.

The companies that actually do buybacks, as opposed to merely announcing them, do very well, and that is intensified for those that buy back stock at high free cash flow yields.

Maybe a more potent question is what about companies doing stock buyback right now, causing all - time highs in stock prices.

In addition, with all that cash in the bank Apple is either going to have to do a massive stock buyback or issue a massive dividend in the coming years.

Also this maybe a bit of a basic accounting question but in PM's case where this is negative equity due to buybacks does one just add back the treasury stock to figure out ROE?

Alternatively, even if the idea of a cash dividend didn't occur to anybody in that world, investors would realize the stock price is depressed and could propose and vote for the board to institute share buybacks.

What do you do with a company that is cheap on a price - to - earnings basis, but tends to waste free cash flow on foolish acquisitions, investments, and stock buybacks?

A perpetual preferred stock is a type of preferred stock that has no maturity, or no specific buyback date, although they do have redemption features.

Repatriation might also help reduce supply, as some corporations previously using the bond markets to raise cash for stock buybacks may no longer need to do so.

The Boston Consulting Group doesn't discount the role that stock buybacks can play in boosting near - term returns for some companies.

Thus, I think the floor for the stock is pretty close below me, and there is a decent possibility that Buffett could do some things with the cash that are even better than buybacks, especially if the market falls into bear territory.

This presents a real problem, if you don't at least venture to determine an Intrinsic Value for your stock, you have no way of figuring out if a share buyback is at a discount and adding true economic value for your shareholders.

Another factor is stock splits — a company with a $ 2 stock could do a 5:1 buyback and it should result in a $ 10 stock as a result.

Also are you in favour of accepting a buyback offer or do you think there will be better returns on rt he stock post the buyback scheme?

Usually buybacks are done because management is flush with cash, and that unfortunately happens when a company's stock is already greatly «appreciated» on Wall Street, i.e. trading at a significant premium to book.

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).

I do not advocate leveraging the company to buy back stock for two reasons: First, higher return comes with higher risk, thus possibly putting downward pressure on a company's P / E and offsetting any benefits from a share buyback.

«Stock buybacks and dividend payments are things companies do when they run out of ideas because there's shareholder pressure,» Scherer told the E-Commerce Times.