All articles tagged with #buybacks
Major U.S. banks announced increased dividends and buyback programs following positive stress test results from the Federal Reserve, indicating strong capital positions and a less stressful scenario than previous years, amidst ongoing debates over the stress testing process and regulatory reforms.
US bank stocks reached a three-year high as investors anticipate increased buybacks and dividends following successful Federal Reserve stress tests, with the sector benefiting from easing regulations, strong earnings prospects, and a broader market rotation into safer assets.
Disney's first quarter results showed a surge in profit and free cash flow, driven by aggressive cost-cutting and a focus on turning its streaming business profitable. The company plans to boost its quarterly dividend payment by 50% and spend about $3 billion on share buybacks, totaling more than $6 billion of capital returns to shareholders over the next year. While the streaming business is on the cusp of profitability, Disney still needs to revitalize its film business, but its strong lineup of upcoming releases and potential in the streaming market make it a promising long-term investment.
Alibaba's stock has plummeted due to regulatory challenges and market volatility, but co-founders Jack Ma and Joe Tsai's $200 million share purchase signals confidence in the company's future. The company's substantial buyback program and potential IPOs of its subsidiaries, along with favorable monetary policies, indicate a path to recovery and long-term success despite historic stock price decline.
Maersk's shares dropped after the company warned about the shipping outlook and suspended its buyback program, citing uncertainties in the global economy and trade tensions. The decision reflects the challenges faced by the shipping industry amid the ongoing pandemic and geopolitical issues, leading to concerns about the company's future performance in the stock market.
Exxon Mobil announced plans to increase buybacks, leading to a rise in its stock price. The company also outlined initiatives to reduce costs, improve earnings, and boost oil production.
Russia is resorting to export requisitions and buybacks to replenish its diminishing arsenal as it continues its invasion of Ukraine. The Wall Street Journal reports that Russian officials have approached countries such as Egypt, Pakistan, Belarus, and Brazil to recover engines and transport helicopters lost to Ukrainian defenses. Moscow is also increasing domestic production. The war in Ukraine has caused tens of thousands of casualties and strained diplomatic relations between Russia and the West. Meanwhile, Russia has withdrawn from the Treaty on Conventional Armed Forces in Europe, citing NATO's expansion as a hindrance to cooperation. Ukraine's counteroffensive has been hindered by delays in receiving weaponry from Western allies.
Investment firm Jefferies suggests that companies like Tencent and Alibaba are well-positioned for buybacks, presenting potential opportunities for investors.
The United Auto Workers (UAW) strike against Detroit's legacy carmakers has brought attention to the billions of dollars these companies have spent on stock buybacks. Some investors are now willing to forgo buybacks as the companies face rising labor costs. The UAW is demanding significant pay raises and concessions in their next contract. Labor organizations argue that buybacks manipulate stock prices and benefit wealthy investors. While buybacks are popular with investors, cutting dividends or reducing payouts is not favored. A prolonged strike would be costly and disruptive for the carmakers.
Alibaba Group Holding Limited reported its Q4 earnings, beating estimates with revenues of slightly above $30 billion and earnings per share of $1.56. The company's profitability is improving rapidly, with EBITA soaring by 60% YoY and adjusted net profit up by 38% YoY. Despite a large buyback authorization, Alibaba's share count did not meaningfully decrease. The company's cash position is one of the largest in the tech industry, making it an attractive investment with a low valuation.
Petrobras reported strong Q1'23 results, beating market expectations despite a slight decline in revenue and gross profit. The company proposed another large dividend distribution for Q1'23 and signaled intentions to add share buybacks to its shareholder return policy. Debt remains manageable, and the market may start reducing the political risk discount as fears of radical changes in the company's governance seem largely exaggerated. Petrobras remains deeply undervalued compared to its peers, presenting an attractive entry point for investors willing to bear the risks.
Apple is expected to announce $90 billion in share buybacks and dividends when it reports its quarterly earnings, reminding investors of its mammoth size and market power. The company has been the buyback king over the past decade, spending over $572 billion on share repurchases. While some analysts are questioning how long Apple can maintain this pace, others expect the company to continue working towards being net cash neutral. While investors are prepared for a down quarter, guidance is a big question mark, with some analysts expecting another annual drop in sales for the June quarter.
The US Department of the Treasury is offering $96bn of Treasury securities to refund approximately $75.2bn of privately-held Treasury notes maturing on May 15, 2023. The balance of Treasury financing requirements over the quarter will be met with regular weekly bill auctions, cash management bills (CMBs), and monthly note, bond, Treasury Inflation-Protected Securities (TIPS), and 2-year Floating Rate Note (FRN) auctions. Treasury believes that current issuance sizes leave it well-positioned for its near-term borrowing needs, and as such, intends to keep nominal coupon and FRN new issue and reopening auction sizes unchanged during the May 2023 – July 2023 quarter.