Buybacks ( General News )

Re: Buybacks ( General News )

Postby behappyalways » Sat Mar 28, 2020 3:45 pm

With Stocks Buybacks Halted, We’ll See How Much They Matter
https://www.bloomberg.com/news/articles ... emium-asia
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Re: Buybacks ( General News )

Postby winston » Wed Apr 08, 2020 10:57 am

Aaand It's Gone... The Biggest Support For Asset Prices

by Lance Roberts

Summary

Between the Fed injecting a massive amount of liquidity into financial markets, and corporations buying back their own shares, there have been effectively no other real buyers in the market.

Much of the debt taken on by corporations was not used for mergers, acquisitions, or capital expenditures, but the funding of share repurchases and dividend issuance.

When you are issuing that much debt for share repurchases, there is a correlation with asset prices.

Given that source of market liquidity is now gone, the market will have a much tougher time maintaining current levels, much less going higher.


“U.S. firms have been the biggest incremental buyer of stocks in each of the past four years, with their net purchases exceeding $2 trillion.

Hedge funds and risk-parity funds have reduced their equity exposure considerably. But institutional active funds and passive products have room for further outflows.

The fiscal bill passed by the US government also allows individuals to withdraw up to $100k from their 401k, without penalty. We believe this could result in over $50bn of further outflows from the retail community.

As well, over 50 companies in the S&P 500 have already suspended their share repurchase programs, which accounted for over 25% of buybacks in 2019.


Source: Seeking Alpha

https://seekingalpha.com/article/433613 ... nt=link-10
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Re: Buybacks ( General News )

Postby winston » Sat Dec 18, 2021 5:34 am

Market Analyst Hulbert: Don't Get Bullish Over Buybacks

Net buybacks over the first three quarters this year were negative, a bearish long-term indicator for stocks, market analyst Mark Hulbert says.

by DAN WEIL

“When it comes to forecasting the stock market, you should focus on net, rather than gross, buybacks,” he wrote on CBS MoneyWatch.

“Upon doing that, the stock market’s future doesn’t look as bright.”

That’s because at the same time companies are buying back their shares, they’re also issuing new ones.

S&P 500 companies bought back $234.5 billion of stock in the third quarter, eclipsing the prior peak of $223 billion in the fourth quarter of 2018, according to S&P Dow Jones Indices.

But the total number of shares actually outstanding in S&P 500 companies at the end of the third quarter exceeded that at the beginning of the year, Hulbert points out.

“According to a 2018 study in the Financial Analysts Journal, … net buybacks explain 80% of the difference in the intermediate and long-term returns of countries’ stock markets. No other indicator came close.”

Source; The Street

https://www.thestreet.com/investing/hul ... 2BBuybacks
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Re: Buybacks ( General News )

Postby winston » Mon Feb 21, 2022 1:13 pm

Surging U.S. Share Buybacks Offer Support to Sputtering Market

by Jessica Menton, Matt Turner and Tom Contiliano

The 10 biggest repurchases for S&P 500 Index companies last quarter totaled $86 billion, up almost 30% from a year earlier, led by Apple Inc., Meta Platforms Inc. and Google parent Alphabet Inc.,

The technology and communication services sectors, which typically have the biggest cash flows, are leading the way.

Major banks, which ratcheted up repurchases in the last year, will likely join the top spenders when they publish their numbers in the coming weeks.

S&P 500 firms are expected to have bought back at least $265 billion in stock in the fourth quarter. That exceeds the third quarter’s all-time high of about $235 billion.

Buybacks may exceed $870 billion for 2021. That would eclipse the record of $806 billion from three years earlier.


Source: Bloomberg

https://finance.yahoo.com/news/surging- ... 00163.html
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Re: Buybacks ( General News )

Postby winston » Tue Mar 29, 2022 10:19 am

Get ready for $900 billion of stock purchases this year, says Goldman Sachs. Here’s who’s buying.

by Barbara Kollmeyer

Our call of the day sees lots of stock buying ahead this year.

Corporates, individuals and even foreign buyers will be scooping up $900 billion in equities, says Goldman.

Source: The Street

https://finance.yahoo.com/m/b9e3552c-0e ... on-of.html
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Re: Buybacks ( General News )

Postby winston » Sat Apr 09, 2022 8:29 am

Bye, Buybacks? No, but Signs Show Some Companies Shifting Focus Away From Them.

By Lawrence C. Strauss

There are some signs that stock buybacks, which have been a popular capital-allocation strategy for many U.S. companies, are losing some steam after starting off the year strongly.

Jill Carey Hall, equity and quantitative strategist at BofA Securities, observed in an April 5 research note that the dollar amount of first-quarter S&P 500 company buyback announcements as a percentage of market capitalization were 50% below their five-year pre-Covid average—0.4% versus 0.8%.

Source: Barron's

https://www.barrons.com/articles/buybac ... e_20220409
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Re: Buybacks ( General News )

Postby behappyalways » Thu Aug 31, 2023 7:40 pm

I forgot the new share repurchase rules will be rolling out in the 4th quarter 2023 - summary below

Good FT pod goes through the new rules & other buyback considerations
https://twitter.com/TMTMoats/status/1695568161062420749
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Re: Buybacks ( General News )

Postby behappyalways » Sun Sep 17, 2023 1:40 pm

Happy Friday! The S&P 500 buyback blackout begins today as 50% of $SPX companies will likely have entered their blackout window.
https://twitter.com/Mayhem4Markets/stat ... 6842669462
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Re: Buybacks ( General News )

Postby behappyalways » Sat Nov 25, 2023 4:29 pm

Buybacks as a percentage of market cap have been the second largest in history (since 2010)
https://twitter.com/Mayhem4Markets/stat ... 2923236455
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Re: Buybacks ( General News )

Postby behappyalways » Thu Dec 07, 2023 11:25 pm

The buyback blackout window begins on Monday, December 11th and ends on January 19th, 2024.
https://twitter.com/Mayhem4Markets/stat ... 9950760399
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