Discover the consumer cyclical stocks with the biggest stock buyback authorizations last month, May
Buybacks
June 18, 2023
Asbury Automotive Group, Inc. (ABG), one of the leading automotive retail and service companies in the U.S., recently authorized a stock buyback of up to $250 million shares of its common stock. This decision reflects Asbury Automotive’s commitment to effectively allocate its capital and maximize shareholder returns in the long run. Asbury's President and CEO, David Hult, emphasized their prudent approach to capital stewardship and their evaluation of various uses of capital, such as reducing leverage, pursuing acquisitions, reinvesting in the business, and repurchasing shares. With a strong cash flow and balance sheet, Asbury fully utilized its previous stock repurchase program and sees the new authorization as a continuation of their balanced capital allocation strategy. As of 2023, Asbury Automotive has already repurchased around 1.1 million shares worth approximately $211 million. The new program allows for the repurchase of common stock through open market transactions, privately negotiated deals, or other legally permitted methods. Factors influencing the extent, timing, and number of shares repurchased include Asbury's stock price, market conditions, impact on capital structure, potential returns from alternative uses of capital, and other relevant considerations. The program is flexible and subject to modification, suspension, or termination without prior notice.
Boyd Gaming Corporation (BYD) recently made an exciting announcement for its shareholders. Boyd Gaming's Board of Directors has approved a stock buyback program, authorizing an additional $500 million for repurchasing its own shares. This decision reflects Boyd Gaming's confidence in its future prospects and a commitment to enhancing shareholder value. As of March 31, 2023, Boyd Gaming had approximately $633 million remaining in repurchase authority, further highlighting its dedication to returning value to shareholders. In addition to the stock buyback, Boyd Gaming's Board of Directors has declared a quarterly cash dividend of $0.16 per share, payable on July 15, 2023, to shareholders of record as of June 15, 2023.
Pool Corporation (Nasdaq/GSM:POOL) recently authorized an additional $413.6 million for its share repurchase program, increasing the total authorization available to $600.0 million. This decision reflects Pool's commitment to returning cash to shareholders through dividends and share repurchases. The Board of Directors also declared a 10% increase in the quarterly cash dividend, now set at $1.10 per share. With a seasoned management team at the helm, POOLCORP aims to create exceptional value for shareholders, customers, suppliers, and employees. At the Annual Meeting of Stockholders on May 3, 2023, several directors were elected to serve for the upcoming year.
Steven Madden, Ltd. (SHOO), a leading fashion-forward footwear and accessories designer, recently announced its financial results for the first quarter of 2023. Despite facing challenges such as a choppy retail environment and conservative order patterns, Steven Madden managed to deliver revenue and earnings slightly ahead of expectations. It also reduced inventory levels and achieved strong gross margin performance. In response to these results, Steven Madden authorized a stock buyback of $189.9 million, bringing the total authorization to $250.0 million.
Hilton Grand Vacations Inc. (HGV) recently authorized a two-year share repurchase plan, allowing the Company to repurchase up to $500 million of its outstanding common stock. This decision follows the completion of a previous two-year repurchase program in May 2023, which had $83 million remaining. Dan Mathewes, senior executive vice president and CFO at Hilton Grand Vacations, expressed confidence in the Company's cash flow trajectory and balance sheet strength, emphasizing their commitment to delivering long-term value to shareholders. The stock repurchase program provides flexibility, enabling HGV to repurchase shares through various methods, including open market purchases and privately negotiated transactions. The program is subject to market conditions and does not impose a specific obligation on HGV to repurchase a set dollar amount or number of shares, with the possibility of suspension or discontinuation at any time.
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