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Buyback

March

Companies think asset sales and capital returns are a one-way ticket to share price riches. They are not.

The buy and sell cycle chewing up ASX companies and their investors

Companies get hoodwinked into thinking selling assets and returning capital via buybacks and dividends can make up for past sins. It doesn’t.

The big banks have bought nearly $20 billion of their own stock since August 2021.

The easy days of banks buying their own shares are numbered

The big four have bought nearly $30 billion worth of their own shares since August 2021. What happens when that buying stops?

February

Investors should tilt their portfolios to companies already conducting a buyback, MST recommended.

The ASX stocks ready to join the record buyback bonanza

ASX 200 companies bought back a record $14 billion worth of shares last year, and 2025 is shaping up to be even busier, according to MST Marquee.

November 2024

Qantas chief executive Vanessa Hudson is getting ready to re-start dividends after a five-year hiatus. That should slow the buyback, but is unlikely to stop it completely.

Qantas has splurged $2.2b on its own shares. Why?

It hasn’t paid a dividend for years, instead returning billions to investors via buybacks. But with the stock at an all-time high, should it still be buying?

July 2024

JPMorgan’s Jamie Dimon enjoys top billing among bank executives globally. When he talks, the local bank bosses are listening.

Shadow of JPMorgan’s Dimon hangs over red-hot Aussie banks

Huge share price runs are great for the banks. But they also create an unexpected problem for bank bosses.

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Incitec Pivot CEO Mauro Neves has cut off sale talks with its Indonesian suitor for its fertiliser business.

Incitec Pivot ditches fertiliser sale talks with Indonesian buyer

The chemicals giant said it shelved the negotiations due to transaction delays as it flagged a $900 million on-market share buyback would still go ahead.

April 2024

A change in its capital-return policy would signal a shift as the company evolves under chief executive officer Andy Jassy, who took the reins from co-founder Jeff Bezos in 2021.

Amazon investors eye bigger returns as cash pile grows

The online retailer could see its cash hoard surge through $150 billion this year, and shareholders are keen to pocket directly more of it.

March 2024

Meta’s buyback authorisation alone has increased by an additional $US30 billion.

Mega-cap tech forecast to drive S&P 500 buybacks: Goldman

Fourth-quarter filings show the magnificent seven is currently authorised to repurchase almost one-third more of their own shares in 2024 than in 2023.

February 2024

If you are a cash machine and the Street is still relatively cautious in the way it values your business, one of the best uses of cash you can do is to buy back your own stock,” New Street’s Pierre Ferragu said.

Uber unveils near-$11b buyback plan in first for company

The capital plan marks another milestone of financial health for the tech company, and follows decisions at Meta Platforms and Airbnb to boost returns to shareholders.

January 2024

Investors expect corporate buybacks to underpin the sharemarket in 2024.

Investors look to buybacks to keep sharemarket afloat

As the US earnings season kicks off and companies start announcing plans to repurchase shares, some pundits hope it will keep last year’s rally running.

November 2023

Block chief Jack Dorsey is being more disciplined on costs.

Jack Dorsey’s Block soars 25pc as it lifts guidance, cuts jobs

Block announced a $1b share buyback, said it would cut 1500 jobs, and lifted FY24 profit guidance. The market approved.

September 2023

Pedestrians outside the New York Stock Exchange.

US firms ease off on share buybacks as interest rates push up costs

Companies are now facing a combination of new investment demands and higher borrowing costs, making buybacks less of a priority.

Nvidia’s headquarters in Santa Clara, California.

Nvidia cash geyser can cover buybacks and vital R&D

Nvidia is projected to generate near $60 billion in free cash flow in its fiscal 2025 year.

August 2023

National Australia Bank CEO Ross McEwan.

NAB buyback is bullish signal on the economy – but not bank profits

That NAB’s board feels confident enough to launch a share buyback speaks to the outlook for the economy and its own balance sheet. But margin pressure is also building. 

The crypto-crackdown comes as banks face increasing pressure to do more to protect customers.

NAB reports $1.9b quarterly profit and a surprise buyback

NAB’s $1.5 billion share buyback reflects the bank’s strength, analysts said, defying concerns about deteriorating credit quality and margin pressures.

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May 2023

Viburnum Funds managing partner Craig Coleman.

Infomedia wrangler Viburnum butts heads with Mayne Pharma’s board

The listed drugmaker is in the firing line of the activist investor, which is taking the board to task for paring back a $113 million capital raising.

Oil companies bought back $US135 billion of their own shares last year.

Share buybacks hit a record $1.9 trillion

The world’s largest companies went on a stock buying spree last year, led by the oil sector.

March 2023

Senior silk Bret Walker taking part in a panel discussion on the Voice at law firm Clayton Utz in Sydney on March 10.

Letters: Haste could damage the Voice

Indigenous Voice to parliament; AUKUS and its consequences; tool for fighting inflation; off-market and on-market share buybacks; Victorian apartments.

February 2023

Warren Buffett.

Buffett brands stock buyback critics ‘silver-tongued demagogues’

The billionaire used part of his annual letter to Berkshire Hathaway shareholders to tout the benefits of repurchases.

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Meta shares soar on resilient revenue and $56b buyback

The fourth-quarter results present a rosier picture for the company, which has been squeezed over the past year.

Original URL: https://www.afr.com/topic/share-buyback-1mp6