Questions tagged [share-repurchase]
Questions relating to companies buying back their own shares from the market.
22
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17
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3answers
5k views
Why would one choose to sell stock back to a company for less than their current market price?
Marathon Petroleum Corporation (MPC) is currently offering to buy back $4 billion USD of their stock (reference).
The minimum they will pay is $56, and the maximum is $63.
Given that this equity is ...
1
vote
1answer
64 views
Stock repurchase calculation
I am reading Apple's 10k and trying to understand it. It says they spend $168.6 billion on repurchase but when I add up I get only 18. Am I reading the table wrong?
I multiplied the number of shares ...
0
votes
1answer
213 views
Can a company legally depress their stock price in order to supercharge their buyback program?
Let's say a company thinks their stock is undervalued. So they start a share buyback program. Before they actually start buying, they tell the world that the company is in trouble and going to lose ...
1
vote
1answer
83 views
Do companies sell shares by selling treasury shares, or do they issue new ones?
Suppose a public company has 1,000,000 authorized shares, of which 400,000 have been issued. The company starts a share-buyback program and buys 100,000 shares. So there are now 100,000 shares in the ...
0
votes
2answers
712 views
Should I sell my shares if the company is doing a share buyback?
Suppose I own shares in a public company. Suppose management has started a long-term open-market share buyback program using idle cash generated purely from free cash flow. Before the open-market ...
3
votes
2answers
188 views
Why are my country's banks buying their own shares now? [duplicate]
In light of the Covid-19 crisis, my country's banks have seen their shares' prices drop. Last week, the banks announced that they will doing a share buyback, and this week, the prices of the shares ...
-1
votes
2answers
127 views
How are corporate stock buy backs identified?
I believe that stimulus will be introduced in the US with clauses that prevent stock buybacks.
I want to speculate that if the stimulus gains traction, then genuinely undervalued stocks will be worth ...
12
votes
2answers
3k views
Why is stimulus to the airlines opposed because of past buy back history? [closed]
I was reading this article where the Airline Union is opposing the Fed to grant stimulus to the Airlines. The reason is that Airlines did a lot of buy back in the past four years. Why is the history ...
-1
votes
2answers
167 views
Do share buybacks leave a company vulnerable to predatory shareholders?
I'm following up on my previous question here: Does the concept of non-outstanding shares exist? . The answer to that question was Treasury Shares vs. Outstanding Shares.
Now I'm trying to ...
2
votes
1answer
89 views
Should I buy shares in public institutions when they are privatized? [closed]
Recently, the government in my country has been privatising big institutions, selling shares mostly to its citizens.
There is of course incentive to buy it from the government, they've been pushing ...
1
vote
0answers
74 views
Can a company repurchase treasury stock or issue shares based on insider information?
Let's say a company knows it's about to release very bad earnings, can management increase the pace of share issuance ahead of the reporting date? Likewise, if a company knows they are about to ...
56
votes
9answers
22k views
What happens if a company buys back all of its shares?
As far as I know, it shouldn't happen, a company shouldn't have that much cash to be able buy all of its shares, because the share price should indicate that the company has that much cash in the ...
2
votes
2answers
114 views
What's the point of share repurchases?
Let's say a company has a market cap of $11 million, 1 million shares outstanding, no debt, and $1 million in cash. Right now, if I am an investor, I own some shares that are worth $11 each. If the ...
1
vote
0answers
63 views
What could be the intention between increase and decrease of share capital that seem to cancel out?
A company has published shareholder meeting decisions: https://cns.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=884745&messageId=1113616
Currently there are 40 794 850 shares with ...
0
votes
1answer
98 views
Participating in a buyback - Understanding the benefits and drawbacks
Recently, A company I have invested in offered to buy back a certain percentage of my shares. I've been considering this proposal and here's what I think.
Say I bought 10 shares in this company over ...
0
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3answers
93 views
Buyback & Split
I receive stock options as part of my compensation package. The stock split a few years ago and rumor has been its about time to split again. Then the company announced a pretty big stock buyback ...
12
votes
1answer
2k views
Do companies sell puts when buying back shares?
Say company X has a share price of $80. They think their shares are undervalued, and their board approved a buyback of $1 billion. Can company X use the $1 billion to sell puts at $79, with the idea ...
3
votes
1answer
581 views
Are stock buybacks similar to dividends?
I read an article about share buybacks.
Tax Benefit In many ways, a buyback is similar to a dividend because
the company is distributing money to shareholders. Traditionally, a
major advantage ...
12
votes
5answers
5k views
How are stock buybacks not considered insider trading?
If, for example, a company knows it is about to have a large, long-term windfall (such as landing a major contract), it could use this knowledge to increase its value by initiating a buyback. How is ...
9
votes
5answers
2k views
Why would a company like Apple be buying back its own shares?
What is the reason that a company like AAPL is buying back its own shares? Does it have too much cash and it doesn't know what to do with it? So it is returning the cash back to investors?
4
votes
1answer
265 views
How do I account for a forced buyback (repurchase) of shares if I buy them back within 30 days?
A company I held shares in forced a buyback of a portion of my shares in them. Within 30 days, I then bought back that same number of shares to maintain my holding and basis. However, taking the two ...
6
votes
2answers
3k views
How do share buybacks work?
When a company announces a share buyback program, who do they actually buy back the shares from? Openly traded shares on a stock exchange? Is there a fixed price that they buy back at?
If I own ...
