6 Companies That Recently Announced Large Buybacks

There are several ways that a company can return wealth to its shareholders. Price appreciation and dividends are the two most common ways, but there are other ways a company can introduce returns to buyers. One method that is less common, or overlooked, is share buybacks.

Here we are going to take a look at what a stock buyback is, how it can affect a stock’s price and what it means for investors. We’ll also give a look at companies that have recently announced buybacks. 

A stock buyback, also known as a share repurchase, occurs when a company buys back its shares from the marketplace with its accumulated cash. A stock buyback is a way for a company to reinvest in itself. The repurchased shares are absorbed by the company, and the number of outstanding shares on the market is reduced. This makes the relative ownership stake of each investor increase, as there are now fewer shares on the market. 

Here are some companies that have recently announced large buybacks:

1. Twitter TWTR Along with a sour earnings report, Twitter reported a new $4-billion buyback program Thursday.
2. PepsiCo Inc. PEP Shares of PepsiCo Inc. rose 1.4% in premarket trading Thursday after the beverage and snacks giant reported fourth-quarter profit and revenue that topped expectations, boosted its dividend and set a new $10-billion stock repurchase program.
3. Bristol Myers Squibb BMY Bristol Myers Squibb said Wednesday it has entered a $5-billion accelerated share buyback program with Morgan Stanley MS, Barclays Bank BCS, Citibank C and JP Morgan JPM. The stock is down 1.24% during the afternoon trading session. 
4. British Petroleum BP BP recently completed a $500-million buyback, and announced on Tuesday, Feb 8. another $1.5 billion in buybacks. 
5. DuPont DD Along with a positive earnings report released on Wednesday, DuPont announced a $1.5-billion buyback. Shareholders were receptive to this, as the stock closed in positive territory. 
6. Bath and Body Works BBWI Bath and Body Works recently reported new guidance, along with a $1.5-billion buyback. The stock has gained more than $4 per share since the Feb. 2 announcement.