November's biggest stock buybacks
Buybacks
December 13, 2023
AECOM, the global infrastructure consulting leader, just greenlit some major financial moves. Their Board of Directors gave the nod to a $1 billion increase in stock buyback authorization and a 22% boost in the quarterly dividend to $0.22 per share. This comes on the heels of a $1.8 billion share buyback effort since September 2020, cutting outstanding shares by 19%.
CEO Troy Rudd emphasized their commitment to a returns-focused capital strategy, prioritizing high-return investments in organic growth. AECOM aims to funnel most of its available cash flow back to shareholders through dividends and buybacks. The increased dividend, effective from January 19, 2024, aligns with AECOM's pledge to deliver double-digit growth in per-share dividend value annually. Rudd emphasized the success of this approach, citing substantial organic revenue growth, a robust design backlog, and a hefty $2 billion returned to shareholders since 2020. With a sturdy balance sheet and accelerating market growth, AECOM looks poised for long-term value creation for its shareholders.
AECOM and its subsidiaries specialize in the global design, construction, financing, and operation of infrastructure assets. AECOM operates across four key segments: Design and Consulting Services (DCS), offering comprehensive planning, architectural and engineering design, and construction management services; Construction Services (CS), providing building, energy, and industrial construction services; Management Services (MS), focusing on program and facilities management, maintenance, training, logistics, consulting, and technology services primarily for government agencies; and AECOM Capital (ACAP), which invests in and develops real estate projects. Founded in 1980 and headquartered in Los Angeles, California, AECOM has a strategic partnership with Amply Power, Inc. to support zero-emission initiatives for bus fleet owners.
AECOM's stock price rose 15% in a month from the time LevelFields.AI sent the alert
Yum China Holdings, Inc. is making strategic moves to benefit its investors. Recently, Yum China Holdings revealed plans to buy back shares worth a substantial $750 million in 2024, as part of an initiative to return $3 billion to shareholders through dividends and stock buybacks from 2024 to 2026. This move is aligned with Yum China's commitment to delivering value to its shareholders.
The stock buyback agreements, totaling around $600 million in the U.S. and approximately HK$1.2 billion in Hong Kong, showcase Yum China Holdings's dedication to equitable access for all shareholders, irrespective of the exchange on which their shares are traded. This decision was made under the stock buyback authorization from Yum China Holdings's board of directors, announced on November 2, 2023. Joey Wat, the CEO of Yum China, emphasized the significance of these programs, stating that they, coupled with dividend payouts, underscore Yum China Holdings's strong commitment to returning capital to its shareholders. Yum China remains focused on executing its RGM 2.0 strategic framework to drive growth and boost profitability, ultimately delivering value to its shareholders.
Yum China Holdings, Inc. is a leading restaurant company in China, specializing in the ownership, operation, and franchising of restaurants. Its two main segments, KFC and Pizza Hut, along with other brands like Taco Bell, East Dawning, Little Sheep, and COFFii & JOY, offer a diverse range of cuisine including chicken, pizza, hot pot, Chinese, Mexican-style food, and coffee. Yum China Holdings, founded in 2016 and headquartered in Shanghai, operates around 10,000 restaurants both in China and internationally. In addition to its focus on restaurant services, Yum China provides online food delivery and has strategic collaborations with China Petrochemical Corporation and China National Petroleum Corporation for franchise development at gas stations.
Brighthouse Financial, Inc. recently greenlit a stock buyback program, allowing the repurchase of up to $750 million of its common stock. This decision follows a prior authorization in August 2021, where Brighthouse Financial earmarked $1 billion for stock repurchases, leaving $71 million unutilized as of November 15, 2023.
Eric Steigerwalt, the President and CEO of Brighthouse Financial, emphasized Brighthouse Financial's commitment to returning capital to shareholders. Since launching the common stock repurchase initiative in August 2018, they've successfully bought back around $2.2 billion of common stock, reducing outstanding shares by over 46%. The buybacks may happen through various channels, including open market purchases, 10b5-1 plans, accelerated stock repurchase plans, or private negotiations, all managed by Brighthouse Financial in compliance with legal standards. This move reflects Brighthouse Financial's strategic approach to enhancing shareholder value and comes amid a consistent effort to deliver on this commitment over time.
Brighthouse Financial, Inc. is a leading provider of annuity and life insurance products in the United States, operating through three segments: Annuities, Life, and Run-off. The Annuities segment offers a range of annuity options for tax-deferred wealth accumulation, wealth transfer, and income security. The Life segment provides various life insurance products to meet policyholders' financial security and wealth transfer needs. The Run-off segment handles structured settlements, pension risk transfers, company-owned life insurance policies, funding agreements, and universal life with secondary guarantees. Established in 2016 and headquartered in Charlotte, North Carolina, Brighthouse Financial serves the diverse financial needs of its clients nationwide.
Brighthouse Financial, Inc.'s stock price rose 9.5% in 2 weeks from the time LevelFields.AI sent the alert
Academy Sports and Outdoors, known as ASO, recently shared its Q3 financial results, revealing challenges due to weakened consumer sentiment and warmer weather impacting Fall product demand. CEO Steve Lawrence acknowledged a shift in customer shopping patterns over the past year. To address this, Academy Sports and Outdoors is focusing on exceptional customer service, innovative gifts, and aggressive marketing this holiday season. Despite the Q3 setback, ASO remains committed to its long-term strategy, growth initiatives, and maintaining a strong value position.
In response to the challenging economic climate, ASO's Board of Directors approved a new three-year, $600 million stock buyback program, totaling approximately $700 million when combined with the existing program. CFO Carl Ford emphasized Academy Sports and Outdoors's commitment to expense control and inventory management for healthy margins and optimal cash flow. The move aims to create shareholder value, demonstrated by $44 million in share buybacks and $7 million in dividends during the quarter. Academy Sports and Outdoors opened 14 new stores in 2023, concluding its annual openings. Looking ahead, ASO adjusted its fiscal 2023 guidance, reflecting narrowed net sales expectations and a focus on expense management to navigate the current economic challenges.
Academy Sports and Outdoors, Inc. is a leading sporting goods and outdoor recreational products retailer in the United States. Through its subsidiaries, Academy Sports and Outdoors offers a diverse range of sporting equipment, apparel, footwear, camping gear, patio furniture, outdoor cooking equipment, and hunting and fishing gear under various brand names, including Academy Sports + Outdoors, Magellan Outdoors, BCG, O''rageous, and Outdoor Gourmet. Operating 259 retail locations in 16 states and three distribution centers, Academy Sports and Outdoors serves customers with a comprehensive selection of products. Academy Sports and Outdoors, founded in 1938 and headquartered in Katy, Texas, also conducts online sales through its academy.com website.
Academy Sports and Outdoors's stock price rose 10% in 4 days from the time LevelFields.AI sent the alert
Coty Inc. just upped the ante on its commitment to shareholders by greenlighting an additional $600 million for stock buyback, bringing the total to a cool $1 billion. Coty is getting strategic about it, entering into savvy total return swaps with banks to manage potential risks tied to stock price fluctuations during its planned buyback of around 25 million shares in fiscal 2026.
This move follows Coty's earlier hedge transactions, aiming to repurchase 27 million shares in 3Q FY24 and 23 million shares in FY25. The beauty giant's ultimate goal? Trim down its diluted share count to a svelte 800 million by FY26. With a focus on robust free cash flow and a step-by-step reduction in leverage, targeting approximately 3x exiting CY23, 2.5x exiting CY24, and 2x exiting CY25, Coty's stock buyback strategy looks set to beautify both its financials and investor portfolios.
Coty Inc., a global beauty product manufacturer, markets and distributes prestige fragrances, skin care, and cosmetics through a diverse portfolio of brands like Gucci, Calvin Klein, and Marc Jacobs. Additionally, it offers mass-market products under brands such as CoverGirl and Adidas. Operating worldwide through various retail channels, including department stores and e-commerce, Coty reaches approximately 150 countries. Established in 1904 and headquartered in New York, Coty Inc. is a subsidiary of Cottage Holdco B.V.
Coty Inc. stock price rose 20% in 3 weeks from the time LevelFields.AI sent the alert
All data was sourced from LevelFields.AI
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