20.9 C
Saturday, July 13, 2024
Home News Updates 20 Companies Are Spending Billions To Boost Their Stock Prices

20 Companies Are Spending Billions To Boost Their Stock Prices

The biggest companies in the world are using their significant cash piles to pump up their stock prices intao year-end. 

About 53.8% of third quarter stock buyback activity was fueled by the top 20 companies, according to new data from S&P Dow Jones Indices senior index analyst Howard Silverblatt. The top 20 list (see below) was headlined by a who’s who of the rich and powerful in corporate America: Apple, Alphabet, Meta, Oracle and Microsoft.

These five companies alone repurchased a startling $66.7 billion of their stock in the third quarter. Zoom out a bit, and the repurchase activity of these five companies is even more impressive: $211.6 billion in the aggregate.

“Apple continued to be the poster child for buybacks as it again spent the most of any issue, with the Q3 2021 expenditure ranked eighth highest in S&P history,” said Silverblatt.

The aggressive buying of stock by companies — which has the effect of lowering share counts and juicing earnings per share —in the third quarter was noteworthy beyond the 20 largest companies listed by Silverblatt.

Third quarter buybacks among S&P 500 companies tallied $234.6 billion, up 18% from the second quarter and 130.5% from one year ago. For the 12-months ended September 2021, buybacks totaled $742.2 billion — up 21.8% year-over-year.

The outlook for buyback activity remains strong, said Silverblatt.

“At this point, a slight market downturn or correction could also see additional buying, as companies with strong (and expected strong) cash-flow stock up on shares. The proposed 1% buyback tax is not expected to materially impact buybacks, as the average daily high/low spread is near that mark (0.97%), showing that timing (or dollar averaging) is just as important,” added Silverblatt.


Please enter your comment!
Please enter your name here

Most Popular

Ruto Announces Six-Day National Dialogue Over Issues Affecting Kenyans

President William Ruto on Tuesday announced a six-day multi-sectoral dialogue forum beginning Monday, July 15, to discuss issues pressing Kenyans. Ruto told journalists at the...

How Trump Lost The Winnable trial In Court

The two HUGE mistakes Donald's lawyers made in his hush money case as his 'deny everything, attack everyone' strategy backfires Donald Trump squandered a 'winnable...

Who is Iranians president Ebrahim Raisi, whose helicopter crashed in foggy weather?

Ebrahim Raisolsadati (Persian: 14 December 1960 – 19 May 2024), commonly known as Ebrahim Raisi was an Iranian politician who was the eighth president of Iran from 2021...

Helicopter Carrying Iranian President Crash

A helicopter carrying Iranian President Ebrahim Raisi crashed while visiting a northern region and his condition is currently unknown, Iranian state news agency IRNA...

Recent Comments