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.

3 Stocks Ready for Share Buybacks

By Will Ashworth, InvestorPlace Contributor
Here's a look at three underperforming stocks that could be tempted -- and have the means -- to increase their share buybacks.

Know the Difference Between Good and Bad Buybacks

By Charles Sizemore, Principal of Sizemore Capital
Stock buybacks might sound like a good investment, but that's only true when the company isn't buying high, and when it's actually reducing shares.

A Nice Prop for Stocks in 2013: Buybacks

By Dan Burrows, InvestorPlace Feature Writer
Like 'em or not, repurchases will at least keep a floor under stocks. And lots of big companies still have billions of dollars in authorizations laying fallow.

Warren Buffett: A Rare Talent in the Stock Buyback Game

By Will Ashworth, InvestorPlace Contributor
Berkshire's $1.2 billion stock buyback program illustrates just how good Warren Buffett is at understanding value, especially compared to most other CEOs.

Berkshire’s Buyback: A $1.2B Bargain

By Dan Burrows, InvestorPlace Feature Writer
Warren Buffett might have changed the rules a little in a $1.2 billion buyback of Berkshire's A shares, but rest assured, he got the deal he wanted.

Morgan Stanley Unchained on Buyback Talk

By Dan Burrows, InvestorPlace Feature Writer
While we'd generally prefer to see money go toward dividends, a potential restart of Morgan Stanley's buyback program speaks bullish volumes.

Don’t Celebrate a Rush Into Stock Buybacks

By Will Ashworth, InvestorPlace Contributor
The pending tax increases are pushing excess cash into share repurchases rather than dividends. That's just plain wrong.

IBM Goes Big With $5 Billion Stock Buyback

By Tom Taulli, InvestorPlace Contributor
IBM announced a $5 billion buyback today in an attempt to build some support after a slide in the stock price.

Best Buy Illustrates the Stupidity of Buybacks

By Will Ashworth, InvestorPlace Contributor
Best Buy's repurchase of $3 billion of its stock during the past 28 months is a perfect example of why buybacks are a waste of money.

17 Companies Spending $2 Billion on Stock Buybacks Every Year

By Jeff Reeves
After years on the rise, stock buybacks are declining. But several companies still spend billions on buybacks each year -- though they don't always pay off.

The (Nearly) Impossible-to-Replicate … AutoZone?

By Ivan Martchev, InvestorPlace Contributor
AutoZone has enjoyed an uncanny amount of success with its glut of stock buybacks -- a feat many other companies have tried (and failed) to repeat.

Why Apple’s Buyback Plan Misses the Mark

By Will Ashworth, InvestorPlace Contributor
It won't really slow dilution, and it's very likely to lead to more costly and ineffective buybacks down the road. Apple could have taken a better approach.

VIDEO: Navellier’s Stocks to Buy on CNBC

By Louis Navellier, Editor, Growth Investor
InvestorPlace's Louis Navellier talks about the favorable stock buyback environment, as well as some of his stock picks.

5 Buyback Companies That Aren’t Buys

By Will Ashworth, InvestorPlace Contributor
Warren Buffett's recent foray into share repurchases isn't a signal to investors that they are always a good thing.

Why IBM’s Stock Buybacks Miss the Mark

By Will Ashworth, InvestorPlace Contributor
IBM has done well by shareholders, but it could have done even better if it put more of its cash into dividend payout than into stock buybacks.

Amgen’s Buyback History Doesn’t Sparkle

By Will Ashworth, InvestorPlace Contributor
Amgen is enjoying a nice run-up since its December stock buyback. But will it end up having been the best deal for shareholders?
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