SAP SE Announced a New €5 Billion Stock Buyback Program and These 12 Other Companies Announced The Same Plan
Buybacks
July 10, 2023
Synopsys, Inc. recently made an important move in the market by authorizing a stock buyback. Synopsys has entered into an accelerated share repurchase agreement (ASR) with Mizuho Markets Americas LLC, aiming to repurchase a significant aggregate of $300 million worth of Synopsys stock. This decision reflects Synopsys' confidence in its future prospects and a strategic focus on enhancing shareholder value.
The ASR agreement outlines that Synopsys will initially receive approximately 645,000 shares, with any remaining balance to be settled on or before August 11, 2023, upon completion of the repurchases. The actual number of shares repurchased will be determined based on Synopsys' daily volume-weighted average share prices during the repurchase period, with a discount applied.
NetApp recently announced its fourth-quarter and fiscal year 2023 results, reporting net revenues of $1.58 billion for the fourth quarter and $6.36 billion for the fiscal year. NetApp achieved significant innovation with the introduction of the C-series, a new family of capacity all-flash storage systems, and NetApp Advance, a portfolio of storage programs to help customers future-proof their on-premises environments. Notably, NetApp returned $1.28 billion to shareholders in fiscal year 2023, representing 116% of cash from operations and 148% of free cash flow. As a result, NetApp authorized a new share repurchase of $1 billion. Recent developments and achievements, including industry recognition and partnerships, highlight NetApp's strong position in the market. Looking ahead, NetApp is confident in its ability to drive long-term growth and deliver increasing value for customers, partners, and shareholders.
One of the significant moves by NetApp was the authorization of a new share repurchase of $1 billion. This decision was driven by NetApp's solid financial performance, including returning $1.28 billion to shareholders in fiscal year 2023, which exceeded cash from operations and free cash flow. NetApp's consistent focus on innovation and its ability to meet customer needs in areas such as hybrid and multicloud infrastructure and data management have contributed to its success. The recent introduction of the C-series and NetApp Advance further strengthens its product portfolio. Additionally, NetApp received industry recognition, including three Outperformer placements in GigaOm's annual Radar reports for storage. These positive developments have likely contributed to NetApp's decision to authorize the stock buyback, reflecting confidence in its future prospects and commitment to delivering value to shareholders.
Conduent Incorporated recently authorized a stock buyback program of up to $75 million of its common stock over the next three years. This move reflects Conduent's confidence in its business strategy, growth opportunities, and commitment to delivering long-term value to shareholders. The decision is based on factors such as Conduent's cash flow trajectory, strong balance sheet, portfolio rationalization program, and the belief that its shares present an attractive investment opportunity.
Conduent intends to repurchase shares through open market transactions, potentially utilizing Rule 10b5-1 trading plans, while complying with relevant legal requirements and regulations set by the United States Securities and Exchange Commission. The program's three-year term does not impose any obligation on Conduent to acquire a specific number of shares and can be modified, suspended, or discontinued at its discretion.
Commvault recently reported its financial results for the fourth quarter and fiscal year ended March 31, 2023. Despite a slight decrease in total revenues for the fourth quarter, Commvault Systems achieved significant milestones, including Metallic surpassing $100 million in ARR (Annualized Recurring Revenue) and a strong cash flow. Commvault's President and CEO, Sanjay Mirchandani, expressed confidence in Commvault Systems's momentum and its ability to meet future challenges.
The decision to authorize a stock buyback was influenced by Commvault's positive financial performance and its belief in Commvault Systems's growth prospects. During the fiscal year, Commvault repurchased approximately 2.5 million shares of its common stock, totaling $150.9 million. This move reflects Commvault Systems's commitment to maximizing shareholder value and demonstrates confidence in its own stock. The Board of Directors also recently increased the share repurchase program by authorizing an additional $250.0 million for future buybacks.
Commvault's stock buyback prospects are supported by its solid financial position, with total cash amounting to $287.8 million as of March 31, 2023. Commvault Systems's ability to generate operating cash flow, driven by the growth of its Metallic as-a-service offerings, further strengthens its position. With an expanded share repurchase program, Commvault can continue to strategically repurchase its common stock, capitalizing on market conditions and potentially enhancing shareholder returns.
ServiceNow has recently authorized its first-ever share repurchase program. The program allows for the purchase of up to $1.5 billion in common stock and aims to manage the dilution resulting from future employee equity grants and stock purchase programs. The decision to implement this program reflects ServiceNow's commitment to driving exceptional shareholder value and their confidence in the trajectory of their business.
According to ServiceNow CFO Gina Mastantuono, ServiceNow remains focused on sustainable growth and continuous innovation. With a strong cash flow generation and favorable market conditions, utilizing a portion of their free cash flow to manage dilution is seen as a strategic capital allocation. The share repurchase program offers flexibility in repurchasing shares through various methods, including open market purchases and privately negotiated transactions.
It is important to note that the program has no fixed expiration date and can be suspended or discontinued at any time. The timing, manner, price, and amount of repurchases will be determined at the discretion of ServiceNow, taking into account several factors such as business performance, economic conditions, prevailing stock prices, and regulatory requirements.
Aspen Technology, Inc. recently authorized a stock buyback program for up to $100 million of its outstanding shares of common stock in fiscal years 2023 and 2024. The decision reflects Aspen Technology's commitment to its capital allocation strategy while maintaining a focus on long-term strategic growth.
Under the program, AspenTech has entered into an accelerated share repurchase agreement with JPMorgan Chase Bank, National Association, to repurchase the common stock. The final settlement of the transactions is expected to occur in the first quarter of fiscal year 2024, subject to early acceleration by JPMorgan.
According to Antonio Pietri, President and CEO of AspenTech, Aspen Technology's main priority for capital allocation remains acquiring assets that support its long-term strategic growth. However, the strong balance sheet and recurring cash flows have provided the opportunity to implement the buyback program, aligning with Aspen Technology's capital allocation strategy.
Silicom Ltd. recently announced its financial results for the first quarter of 2023. Silicom reported a 16% increase in revenues compared to the same period last year, reaching $37.2 million. On a GAAP basis, net income for the quarter was $3.5 million, reflecting a 63% growth. Additionally, on a non-GAAP basis, net income totaled $4.2 million, a 38% increase. Silicom's management projects further growth, estimating revenues between $38 million and $39 million for the second quarter of 2023.
In light of Silicom's strong performance and positive outlook, Silicom's Board of Directors has authorized a new one-year share repurchase plan. The plan allows Silicom to invest up to $15 million in repurchasing its ordinary shares. The decision to authorize the stock buyback highlights the management's confidence in Silicom's business strategy and commitment to creating shareholder value. The specific timing and number of shares repurchased will depend on various factors, including the current share price, market conditions, and legal requirements. The share repurchase plan is not obligated to repurchase any specific number of shares and may be suspended or terminated at management's discretion.
Calix, Inc. recently confirmed its second quarter 2023 guidance, maintaining the revenue and gross margin range previously provided in April 2023. Calix's revenue is projected to be between $255 million and $261 million, with a gross margin of 51.0% to 53.0% on a non-GAAP basis.
In a recent development, Calix's Board of Directors authorized an amendment to their stock repurchase program. The original program, approved in July 2022 with a scheduled end date of July 15, 2023, has now been extended indefinitely. This change allows Calix to continue repurchasing its common stock until the program is suspended or discontinued, providing greater flexibility. It's important to note that the program doesn't impose any obligation on Calix to acquire a specific amount of stock, and Calix can suspend or discontinue the program at its discretion.
Since the initiation of the stock repurchase program, Calix has already repurchased $10 million worth of its common stock, averaging $44.53 per share. This move signals Calix's confidence in its future prospects and its commitment to enhancing shareholder value. Investors and analysts will closely monitor Calix's stock buyback program and assess its impact on Calix's overall financial performance and stock price moving forward.
Cadence Design Systems, Inc. recently made a strategic move by authorizing a stock buyback program. Cadence Design Systems has entered into an accelerated share repurchase (ASR) agreement with HSBC Bank USA, National Association, with the aim to repurchase $200 million of Cadence common stock.
This decision reflects Cadence's confidence in its financial position and growth prospects. By repurchasing its own shares, Cadence Design Systems demonstrates its belief that the stock is undervalued, providing an opportunity to enhance shareholder value. The ASR agreement allows Cadence to receive an initial delivery of approximately 600,000 shares, and the remaining shares, if any, will be settled in the third quarter of 2023 upon completion of the repurchases. The final number of shares repurchased will be determined based on Cadence's daily volume-weighted average share prices during the ASR agreement, after applying a discount.
Logitech International has recently announced the authorization of a new three-year share buyback program. The board of directors has approved this program, allowing Logitech to allocate up to $1 billion for the repurchase of its shares. The 2023 share buyback program is expected to commence in July 2023, pending approval from the Swiss Takeover Board and following the expiration of Logitech's 2020 share buyback program.
In addition to the share buyback program, Logitech's board of directors has also given their approval for a proposal to increase the Fiscal Year 2023 cash dividend. Shareholders will have the opportunity to vote on this proposal at the upcoming 2023 Annual General Meeting, and if approved, it will result in an approximate increase from CHF 0.10 to CHF 1.06 per share. This decision further underscores Logitech's ongoing commitment to consistently provide returns to its shareholders.
ePlus Inc. recently announced that its board of directors has approved a stock buyback program, authorizing the repurchase of up to 1,000,000 shares of ePlus's outstanding common stock within a 12-month period, starting from May 28, 2023. This move comes as ePlus's current repurchase plan is set to expire on May 27, 2023. With approximately 26.9 million shares of common stock outstanding as of April 3, 2023, this buyback represents a significant portion of ePlus's shares.
The buyback program provides ePlus with the flexibility to acquire shares either through open market purchases or privately negotiated transactions, depending on availability. The repurchased shares will be classified as treasury shares and can be utilized for general corporate purposes as and when required. It's important to note that ePlus is not obligated to repurchase shares under this authorization, and the timing and quantity of repurchased shares will be at the discretion of management, taking into consideration various factors including the price of ePlus's common stock. ePlus reserves the right to suspend or discontinue repurchases at any time.
IPG Photonics Corporation reported its financial results for the first quarter ended March 31, 2023. Despite a 6% decrease in revenue compared to the previous year, IPG Photonics's management highlighted strong results in welding, driven by record sales in EV battery applications and their handheld welder, LightWELD. They also noted increased demand in e-mobility and solar cell manufacturing, as well as higher sales in cleaning applications due to investments in sustainable energy solutions. While general industrial activity was muted, IPG's diversification efforts and revenue from emerging growth products helped offset the soft demand in applications like cutting and marking.
Recent developments and news contributed to IPG Photonics' decision to authorize a new stock buyback program. After completing a $300 million share repurchase program in the first quarter of 2023, the Board of Directors approved a new program to buy back up to $200 million of IPG common stock. IPG Photonics has been actively repurchasing its stock, having already bought back over $600 million since the beginning of 2022. The stock buyback program allows IPG to invest in its own shares, which may indicate confidence in IPG Photonics's prospects and potentially enhance shareholder value.
SAP SE recently announced an update to its mid-term financial plan, Ambition 2025, along with a new share repurchase program. The updated plan reflects SAP's strong cloud momentum and includes a cloud revenue ambition of over €21.5 billion. It also anticipates divestiture of Qualtrics, a subsidiary of SAP. SAP SE expects significant growth in cloud revenue, total revenue, non-IFRS cloud gross profit, and non-IFRS operating profit by 2025. The updated plan is based on factors such as rapid cloud revenue growth, recurring revenues, the value of support and services, and a favorable currency environment. Additionally, SAP has authorized a new share repurchase program with a volume of up to €5 billion, which is expected to be executed by the end of 2025. This decision reflects SAP SE's strong business momentum and the expected divestiture of Qualtrics. The program will be implemented in compliance with the authorization granted by the Annual General Meeting of SAP SE in May 2023.
These recent developments highlight SAP's commitment to its shareholders and its focus on delivering strong financial results. By updating its Ambition 2025 plan and implementing a new share repurchase program, SAP aims to accelerate growth and increase shareholder value. SAP SE's cloud momentum and anticipated divestiture of Qualtrics contribute to the decision to authorize a stock buyback. With these initiatives in place, SAP is well-positioned to achieve double-digit operating profit and free cash flow growth in the coming years, while setting the stage for sustainable growth beyond 2025.
All data was sourced from LevelFields AI
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