Buybacks

Buybacks, or share repurchasing, occur when a corporation decides to purchase some of their own shares back. One main reason companies implement a buyback program is to increase the earnings per share of their stock. A higher earnings per share can drive their stock price up and generate more interest in their stock, thus providing the company with more funds to work with.
As an investor, buybacks often signal a turning point for a company’s stock and usually point to continued growth. Because of that, investors would be wise to purchase stock around the time of a buyback to take advantage of the rising value of the stock.

Recent Articles

Capex, Dividends and Buybacks – American Companies Are Spending Big

Companies are trying to be more shareholder-friendly, via dividends and buybacks ... but contrary to popular belief, they're also investing in the future. More 

The 2 Biggest Lies of Buybacks

S&P 500 companies have spent $211 billion in 2014 buying back stock. But here's why buybacks aren't always as good as they seem. More 

Buybacks All Day – Morning Linkfest (May 29)

Who's bidding the S&P 500 up? Apparently it's the S&P 500. Zero Hedge's look at buybacks and more in our daily linkfest. More 

Apple Stock: Give Us Buybacks … Or Else!

Apple had better increase buybacks when it reports earnings next week. Otherwise, Apple stock investors are in for another disappointing run. More 

Short-Term Thinking by CEOs: A Wall Street Cancer

Think you're getting value from quick buybacks and debt-for-dividends? Think again. Financial bandages are bad for you, companies and the nation. More 

3 ETFs That Make the Most of Buybacks

Buybacks can be a great thing when done correctly. Unfortunately, that rarely happens. But these ETFs can help you make the most of stock buybacks. More 

BA Stock – Boeing Boosts Buyback by $10B, Hikes Dividend

Boeing says it will repurchase an additional $10 billion worth of BA stock over the next several years and raise its quarterly dividend. More 

7 Generous Dividend Stocks Giving Big Cash Back to Shareholders

Consider these 7 blue-chip dividend stocks as case studies in companies that are being very generous with their profits, via dividends and buybacks. More 

3 Companies That Burn Cash Worse than the New York Yankees

Just like baseball teams, some companies aren't very savvy spenders. We look at some of the most egregious buyback habits. More 

The Gun Stocks Trade Is Still Firing

Gun stocks continue to fire as Smith & Wesson (SWHC) announces additional share buybacks and Sturm, Ruger (RGR) keeps hitting the bull's-eye. More