Sentences with phrase «with stock buybacks»

Now, there is nothing wrong with stock buybacks and dividends per se, and indeed they can contribute to a very sensible corporate capital allocation strategy, but should this use of capital crowd out long - term capital expenditure (investment) in a firm's core business, or begin to threaten its credit quality, then it can become concerning.
There is nothing inherently wrong with stock buybacks.
But if this economic cycle indeed has another extended leg in — as plenty of indicators suggest — and companies can keep the profit machine running along with stock buybacks and mergers, there's no saying the market as a whole can't work its way a good deal higher before it reaches its ultimate peak.

Not exact matches

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.
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.
Though the billionaire investor recently backed down from his fight with Apple for a stock buyback, he still may have won the battle; CEO Tim Cook announced Apple repurchased $ 14 billion of its shares.
In recent years, much has been made of how much companies are spending to buy back their own stock, particularly with buybacks up 50 % so far this year.
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.
Coupled with its favorable market segments, Sprouts is generating positive cash flow and returning cash to shareholders via a stock buyback program.
Apple has called the idea «creative» and says it continues to study it, along with the notion of increasing the size of its dividends and stock buyback programs.
This hasn't stopped Apple from richly rewarding its American shareholders with fat dividends and stock buybacks that raise share prices.
The bank's profits dropped 3.1 %, to $ 5.4 billion from $ 5.6 billion, with that difference in net income due to legal expenses, debt charges and $ 15 billion in stock buybacks that reduced the bank's outstanding shares by 4 %.
Here's how that compares with some companies that are known for their large stock buybacks.
With a long history of profit growth, overly pessimistic expectations baked into the stock, and a 6 % (dividend plus share buybacks) yield, this week's Long Idea is Eaton Corporation (ETN).
And I think the example of that, which you point out in your book, is what's happened in terms of large corporations with stock dividends and buybacks.
The three CEOs, over the span of a dozen years, followed a strategy that has become the norm for many big companies during the past two decades: large stock buybacks to make use of cash, coupled with acquisitions to lift revenue.
Lately, the sheer volume of buybacks has prompted complaints among academics, politicians and investors that massive stock repurchases are stifling innovation and hurting U.S. competitiveness — and contributing to widening income inequality by rewarding executives with ever higher pay, often divorced from a company's underlying performance.
Green Dot Corp. jumped 40 percent after authorizing a stock buyback plan and reaching a new, five - year deal with Wal - Mart Stores Inc..
Management has historically returned capital to shareholders through stock buybacks and dividends, and with insiders owning 35 % of outstanding shares, we expect Franklin to continue to be good stewards of shareholders» capital.
«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.
Also, with their huge FCF they can maybe pay down debt faster, acquire other companies to keep growing, pay more dividends, or buyback their stock.
The benefits of tax reform are just being felt, U.S. companies are sitting on a record amount of cash and dividends are a popular use for that money, along with merger and acquisition activity and stock buybacks.
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.
Green Dot Corp., the issuer of reloadable prepaid debit cards, jumped 36 percent Tuesday after reaching a new five - year deal with Wal - Mart Stores Inc. and authorizing a $ 150 million stock buyback.
Usually a stock buyback program is a way to repay investors with cash currently sitting in the bank.
Schumer read aloud quotes from CEOs saying they would plow corporate tax cuts into stock buybacks and other such expenditures aimed at increasing the value of shares (and potentially CEO bonuses), with no mention of jobs.
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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).
Even with all the buybacks and LBOs, it isn't normal for stocks and bonds to trade in a tight correlated way in the short run, so, take one of your eyes off of bonds, and look at the fundamentals of the companies that you own.
Credible management teams can make the stock price rise with the mere mention of a buyback.
These banks are now able to move forward with their plans to return cash to shareholders, either in the form of stock buybacks or increasing dividends.
It seems the average manager prefers to goose an already overvalued stock with a buyback at shareholder's cost.
In comparison, the market gained 10.5 % per year over the same period and stocks with the lowest 10 % of buyback yields climbed only 5.9 % per year.
A portfolio made up of the 10 % of stocks with the highest buyback yields, rebalanced each year, was the best performer over the long term.
With payout, my definition is broader than the conventional dividend - based one; I would include stock buybacks in my computation of cash returned, thus bringing a company like Apple to a high payout ratio.
A buyback is when a company repurchases its stock with the goal of reducing the number of its share on the market.
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.
With the reduction in both corporate and repatriation taxes, we expect an increase in acquisition activity, stock buybacks and dividend hikes over the course of the next 12 to 18 months.
The impact of a $ 2M stock buyback at Friday's closing price is to increase per share liquidation value by around 6 % to $ 1.64 and leaves the company with $ 26.3 M in cash and short term investments.
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?
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.
Obviously with tech companies and their cash holdings, their approaches to stock comp / buybacks / repatriation / capex through acquisition etc have to be borne in mind, and how much of it is effectively working capital in one form or another — but it occurred to me that there are a few companies out there where cash balances could make a material difference to valuation (even more so than picking the right multiples with some!)
* 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.
With a payout ratio in the low 30s, there is plenty of cash for Suncor Energy to raise the dividend or initiate stock buyback programs to 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.
The Index is comprised of the 100 companies with the best combined rank of dividend payments and net stock buybacks, which are the key components of shareholder yield.
Investors can profit from companies that aim to increase shareholder value through stock buybacks — as well as with dividends.
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.
Stocks with high completion rates but low stock returns following previous buybacks enjoy abnormally large returns following a subsequent buyback announcement.
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