Discover the 6 stocks that authorized the biggest stock buyback programs last week
Buybacks
December 21, 2023
Cigna Corporation just got the green light from its Board of Directors to amp up its stock buyback game by an impressive $10 billion. This move brings their total stock buyback authority to a hefty $11.3 billion. Why the vote of confidence in their own stock? Well, according to David M. Cordani, the Chairman and CEO, it's because they see their shares as undervalued. They're planning to throw around $5 billion into buying back common stock by mid-2024, with a chunk of this happening pronto through an accelerated stock buyback program in Q1 2024.
Cordani emphasizes that this isn't just a financial maneuver. Cigna Corporation's mission is to support top-notch care, improved affordability, and better health outcomes. In the grander scheme, they're keeping their eyes peeled for strategic opportunities while staying disciplined in their financial approach. And hey, if the stock market conditions play nice, Cigna might snag its shares through various avenues like open market purchases, accelerated stock buyback agreements, and other legit means.
What's more, Cigna isn't just throwing money around blindly. They're sticking to their financial goals, reaffirming a full-year 2023 outlook and aiming for at least $28 per share in consolidated adjusted income from operations by the end of 2024. Cordani wraps it up by highlighting Cigna Corporation's robust growth over the past decade, showcasing an impressive annualized EPS growth of more than 13 percent. So, if you're a shareholder or eyeing Cigna's moves, buckle up for what seems to be a promising ride into 2024.
Cigna Corporation, founded in 1792 and headquartered in Bloomfield, Connecticut, is a leading provider of insurance and related services, operating through segments such as Health Services, Integrated Medical, International Markets, and Group Disability and Other. Cigna Corporation offers a comprehensive range of products and solutions, including pharmacy benefits management, health management services, medical, dental, vision, and behavioral health coverage. Cigna serves insured and self-insured clients, Medicare-eligible beneficiaries, and mobile employees of multinational organizations. With a strategic alliance with Priority Health, Cigna aims to enhance accessibility to health care coverage in Michigan. Cigna Corporation distributes its offerings through various channels, including insurance brokers, consultants, and direct sales to employers, unions, groups, and individuals.
Centene Corporation is making strategic moves to boost long-term shareholder value. In a recent investor day, CEO Sarah M. London highlighted Centene Corporation's commitment to affordable healthcare and projected an adjusted diluted EPS outlook exceeding $6.70 for 2024, showcasing positive operational momentum. To support this growth, Centene's Board of Directors has greenlit a $4.0 billion increase to its stock buyback program, supplementing the existing $1.2 billion authorization. This move signals confidence in Centene's future prospects, reinforcing its commitment to delivering value to investors. Stay tuned for the full-year 2023 earnings report on February 6, 2024, which is expected to shed more light on Centene's financial performance and the impact of these strategic initiatives.
Centene Corporation, founded in 1984 and headquartered in St. Louis, Missouri, is a leading multinational healthcare enterprise focusing on providing programs and services to under-insured and uninsured individuals in the United States. Centene Corporation's Managed Care segment specializes in offering health plan coverage through government-subsidized programs such as Medicaid, State Children's Health Insurance Program, long-term services and support, foster care, and Medicare-Medicaid plans. This includes a comprehensive range of healthcare services like primary and specialty physician care, hospital care, emergency services, prenatal care, telehealth, and more. Additionally, Centene's Specialty Services segment delivers pharmacy benefits management, health and disease management, vision and dental services, and care management software. Centene Corporation serves a diverse range of clients, including state programs, correctional facilities, healthcare organizations, employer groups, and commercial entities. Centene Corporation collaborates with AT&T to enhance its healthcare offerings.
Kontoor Brands, the global lifestyle apparel company behind iconic brands like Wrangler® and Lee®, recently greenlit a $300 million stock buyback program. This move, replacing the previous program from August 2021, showcases Kontoor Brands's robust financial health and commitment to maximizing shareholder returns. Scott Baxter, Kontoor Brands' President and CEO, emphasized Kontoor Brands's strong cash flow as the driving force behind this decision.
The authorized stock buyback program allows Kontoor Brands to buy back up to $300 million worth of its common stock. Kontoor Brands intends to make these repurchases based on market conditions, compliance with debt covenants, and other relevant factors. While there's no set expiration date for the program, Kontoor Brands retains the flexibility to suspend, modify, or terminate it at any time without prior notice. The funding for these repurchases is expected to come from Kontoor Brands's operational cash flow. This strategic move underscores Kontoor Brands' dedication to delivering superior Total Shareholder Return in the long run.
Kontoor Brands, Inc., a lifestyle apparel company, designs, manufactures, sources, markets, and distributes apparel under the Wrangler and Lee brands in the United States and internationally. Kontoor Brands sells its products primarily through mass and mid-tier retailers, specialty stores, department stores, and retailer-owned and third-party e-commerce sites, as well as through direct-to-consumer channels, including full-price stores, outlet stores, and its websites. Kontoor Brands, Inc. was incorporated in 2018 and is headquartered in Greensboro, North Carolina.
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SEI Investments Company is making strategic moves to boost shareholder value. Recently, on December 15, 2023, SEI's Board of Directors announced a regular semi-annual dividend of $0.46 per share, demonstrating its commitment to rewarding shareholders. Shareholders on record as of December 28, 2023, can expect the cash dividend in their accounts by January 9, 2024.
In addition to the dividend, SEI Investments Company has given the green light to an expanded stock repurchase program. The Board approved an increase of $250 million, bringing the total authorization under the program to around $289 million. This move signals SEIC's confidence in its financial strength and underscores its commitment to returning value to shareholders. Analysts suggest that recent positive developments and a robust financial outlook may have influenced SEI's decision to authorize the stock buyback, potentially signaling positive prospects for investors in the coming months.
SEI Investments Company, founded in 1968 and headquartered in Oaks, Pennsylvania, is a publicly owned asset management holding company that delivers comprehensive financial solutions. Operating through its subsidiaries, the firm offers a range of services, including wealth management, retirement and investment solutions, asset administration, investment processing outsourcing, and investment advisory services. SEI serves a diverse client base, including private banks, institutional investors, independent financial advisers, corporations, and non-profit organizations. SEI Investments employs a strategic approach, combining fundamental and quantitative analysis, to manage separate client-focused portfolios and oversee mutual funds in equity, fixed income, and balanced categories.
ABM Industries, a prominent facility solutions provider, has reported robust financial results for Q4 and the full fiscal year ending October 31, 2023. Despite challenges like labor shortages and commercial real estate softness, ABM achieved a 4.1% revenue growth in Q4, driven by solid performances in Aviation, Technical Solutions, Manufacturing & Distribution, and Education segments. Looking ahead to fiscal 2024, ABM Industries foresees healthy conditions in Technical Solutions, Aviation, Education, and M&D, while commercial real estate challenges may persist.
In light of its strong financial position and focus on long-term growth, ABM recently authorized a stock buyback of up to $150 million, expanding its existing program to approximately $210 million. This move underscores the company's commitment to delivering value to shareholders. Additionally, ABM increased its quarterly cash dividend by 2.3%, signaling confidence in its financial outlook. As the company navigates market conditions, its strategic initiatives, including the ELEVATE program, are expected to enhance operational efficiency and contribute to sustained growth.
These financial moves align with ABM's broader strategy, emphasizing resilience, client focus, and strategic investments. With a positive outlook for key segments, ABM aims to balance capital returns to shareholders with continued investments in growth opportunities, reinforcing its position in the market.
ABM Industries Incorporated provides integrated facility solutions in the United States and internationally. The company operates through Business & Industry, Aviation, Technology & Manufacturing, Education, and Technical Solutions segments. It provides janitorial, facilities engineering, parking, custodial, landscaping and ground, and mechanical and electrical services; and vehicle maintenance and other services to rental car providers. The company was founded in 1909 and is headquartered in New York, New York.
Arbor Realty Trust, Inc. has just given the green light to a significant boost in its stock buyback program. Arbor Realty Trust's Board of Directors approved an increase, allowing Arbor Realty to buy back up to $150 million worth of its common stock. This move provides flexibility as shares can be repurchased at the discretion of management, either through open market transactions, privately negotiated deals, or other methods in compliance with established regulations.
The decision stems from various factors, including Arbor Realty Trust's stock performance, general market conditions, legal requirements, and other considerations. Notably, Arbor Realty Trust is not bound to acquire a specific amount of its outstanding shares, and the timing and volume of repurchases will be contingent on these influencing factors. It's crucial to keep an eye on Arbor Realty Trust's stock and any developments, as this stock buyback program is ongoing with no set time limit, and Arbor Realty Trust reserves the right to suspend, modify, or discontinue it as needed. Stay tuned for further analysis and insights into Arbor Realty Trust's stock buyback prospects.
Arbor Realty Trust, Inc., founded in 2003 and based in Uniondale, New York, is a real estate investment trust (REIT) specializing in structured finance assets across multifamily, single-family rental, and commercial real estate markets. Operating through two segments, Structured Business and Agency Business, Arbor Realty Trust focuses on diverse investments such as real estate-related bridge and mezzanine loans, preferred and direct equity, as well as mortgage-related securities. Arbor provides bridge financing for property acquisitions, makes preferred equity investments, offers mezzanine financing, and participates in senior debt transactions. Additionally, Arbor Realty Trust underwrites, originates, sells, and services multifamily mortgage loans. As a REIT, Arbor Realty Trust is exempt from federal corporate income taxes by distributing at least 90% of its taxable income to stockholders.
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