Discover the consumer cyclical stocks with the biggest stock buyback authorizations last month, June
Designer Brands Inc. (DBI), a leading global footwear and accessories designer, producer, and retailer, recently announced a modified "Dutch Auction" tender offer to repurchase up to $100 million worth of its Class A common shares. This represents approximately 25% of Designer Brands's outstanding Class A common shares. The tender offer allows shareholders to sell their shares at a price within the range of $7.00 to $8.00 per share. Designer Brands's decision to authorize the stock buyback is likely driven by various factors, including optimizing its capital structure, returning value to shareholders, and potentially signaling confidence in Designer Brands's future prospects. Recent news or developments that may have influenced this decision are not explicitly mentioned in the provided information. However, it is worth noting that Designer Brands intends to secure a term loan agreement for $135 million, with a significant portion of the proceeds allocated to fund the tender offer. This move suggests that Designer Brands is actively taking steps to ensure sufficient funding for the stock buyback. The tender offer is set to expire on July 7, 2023, and Designer Brands's executives and directors have expressed their intention not to participate in the offer.
a.k.a. Brands Holding Corp. (NYSE: AKA), a leading brand accelerator specializing in next generation fashion brands, recently announced its approval of a share repurchase program. The program enables a.k.a. Brands to repurchase its common stock, with an authorization of up to $2 million. Factors such as available liquidity, prevailing market conditions, alternative capital utilization, and other considerations will influence the timing and extent of the share repurchases. a.k.a. Brands may execute repurchases through various methods, including open market transactions, block trades, or private transactions, ensuring compliance with relevant securities laws and regulations. Moreover, a.k.a. Brands may implement a trading plan under Rule 10b5-1, enabling repurchases during periods when self-imposed trading blackout restrictions or other regulatory limitations would otherwise prevent them. It is important to note that a.k.a. Brands retains flexibility regarding the number of shares to be repurchased, and the Share Repurchase Program may be suspended or terminated without prior notice.
Genesco Inc. (GCO) recently announced that its board of directors has approved a $50 million increase to its existing $200 million share repurchase authorization. This move highlights Genesco's confidence in its future prospects and commitment to enhancing shareholder value. Since September 2019, Genesco has already repurchased 3.9 million shares at a cost of approximately $189.5 million, leaving $10.5 million remaining under the existing program. In the current quarter alone, Genesco has repurchased approximately 676,000 shares for $14.5 million, averaging $21.41 per share. Overall, Genesco has repurchased around 9.2 million shares, totaling roughly $415 million since December 2018, which represents over 46% of the shares outstanding at the beginning of these purchases. With the new authorization, Genesco has the flexibility to execute the repurchases through various methods, such as open market purchases, private transactions, or block trades, considering prevailing stock prices, market conditions, and legal requirements. It's important to note that Genesco is not obligated to acquire a specific amount of stock, and the repurchase program may be suspended or discontinued at its discretion.
AutoZone, Inc. (AZO) recently announced that its Board of Directors has authorized the repurchase of an additional $2.0 billion of AutoZone's common stock, as part of its ongoing share repurchase program. This decision reflects AutoZone's commitment to maximizing value for its shareholders. With a strong financial performance, AutoZone is able to grow its business, maintain investment grade credit ratings, and return cash to shareholders. The authorization brings the total amount authorized for share repurchases to $35.7 billion since the program's inception in 1998.
Stellantis N.V. ("Stellantis"), a leading automotive company, recently announced the authorization of a stock buyback program. The Program, initially announced on February 22, 2023, allows for the purchase of up to €1.5 billion worth of common shares in the open market. Following the completion of the first tranche on May 18, 2023, Stellantis has now entered into an agreement for the second tranche of the Program, which covers a maximum amount of up to €500 million. The buybacks will be carried out by an independent investment firm, with the goal of canceling the acquired common shares. This decision was made in accordance with the authority granted by the general meeting of shareholders held on April 13, 2023, allowing for the repurchase of up to 10% of Stellantis's capital. The purchase price per common share will be determined based on the market price, which cannot exceed 110% of the average highest price over the five days preceding the acquisition. The share buybacks will be conducted in compliance with applicable regulations, including the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052. With the remaining authorization standing at approximately 290 million shares, Stellantis expects it to be sufficient to cover this Program and any repurchases of the 99.2 million shares owned by Dongfeng Corporation, Stellantis' Chinese JV partner.
All data was sourced from LevelFields AI
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