3 Fresh Stock Buybacks: These are the Ones to Buy

MarketBeat.com tracked numerous buyback announcements in September, and the month is still ongoing. Buybacks are a sign of corporate strength and help build shareholder value, but not all buybacks are equal. Buybacks that reduce share count and build value can help drive stock prices higher over time; buybacks that only partially offset dilution are another story, and money going down a hole.

These are the stocks that present value to investors with robust, share count-reducing stock buybacks. 

Rockwell Automation Buyback Plans Will Build Value

The share count was down 1.2% average at the end of Q3, accelerating from the 0.75% reduction posted last year. 

Repurchases are compounded by a dividend, which is worth nearly 2.0% on an annualized basis. The distribution is safe and growing with a payout ratio below 50%, long-term debt at less than 1X equity, and a fourteen-year history of increases. Sixteen analysts rate the stock as a Hold, with sentiment firming in recent revisions and expecting a 10% upside at the consensus. 

Helen of Troy Share Repurchases Reduced the Count by 2%

Autohome Inc. Buys Back Shares, Pays a High Dividend Yield

The stock is trading at rock bottom levels, with shares moving up from the critical support level and bullish signals in the indicators, so upward movement is expected to continue. The signals aren’t strong, but the risk-reward profile is skewed in favor of the upside because the clearest target for strong resistance is about 30% above the current action. 

The article "3 Fresh Stock Buybacks: These are the Ones to Buy" first appeared on MarketBeat.

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