5 Companies Buying Back Their Own Stock Hand Over Fist As the Stock Market Sells Off
When stock prices fall, every buyback dollar goes further. These five companies are taking advantage.
During the recent market downturn, several corporations have stepped up their efforts to repurchase their own shares. This strategy of stock buybacks can enhance shareholder value by increasing ownership stakes as the price per share drops. Five companies are currently making substantial buyback purchases. PayPal (PYPL +0.68%) has spent $6 billion over the past year to buy back around 117 million shares, reducing its diluted share count by 11%.
General Motors (GM -2.35%) recently authorized a new $20 billion buyback program, which is about a quarter of its market value. IT services company EPAM Systems (EPAM -5.32%) raised its buyback authorization to $1.8 billion and plans a $500 million accelerated share repurchase. Semiconductor equipment maker Lam Research (LRCX +8.75%) announced a $25 billion buyback authorization, representing about 10% of the company's market value.
Airbnb (ABNB +12.35%) paired a strong third-quarter report with a $12 billion buyback authorization, complementing its existing $2.7 billion program. While these companies' aggressive buybacks offer potential benefits, investors should be aware of the risks involved.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
