Discover 20 of 2023's biggest stock buyback authorizations
Buybacks
January 1, 2024
Apple announced a substantial increase in its stock buyback program by a staggering $90 billion. This decision followed the revelation of unexpected growth in the iPhone business during the first quarter, with iPhone revenue reaching $51.3 billion, surpassing analyst expectations of a decline to $48.7 billion. The CFO, Luca Maestri, attributed this growth to strong performance in emerging markets, particularly in South Asia, India, Latin America, and the Middle East.
Despite a dip in overall fiscal second-quarter revenue to $94.8 billion from the previous year's $97.3 billion, the positive iPhone performance contributed to a 2.5% rise in Apple shares during extended trading. Notably, Apple's expansion into India with the opening of two stores and CEO Tim Cook's optimistic outlook on the growing middle class in India played a role in this unexpected success.
Alongside this impressive financial report, Apple declared a 4% increase in its dividend and a $90 billion boost to its stock repurchase plan. The move aligns with Apple's commitment to returning value to shareholders. Despite revenue declines in iPad and Mac categories, Apple remains bullish on its future, with executives expressing optimism about recent financial-services initiatives. As the tech giant navigates economic challenges, the decision to authorize such a significant stock buyback signals confidence in its long-term growth prospects.
Apple Inc., founded in 1977 and headquartered in Cupertino, California, is a global technology company known for designing, manufacturing, and marketing a wide range of consumer electronics and related services. Apple's product portfolio includes the iconic iPhone smartphones, Mac personal computers, iPad tablets, as well as wearables and accessories such as AirPods, Apple Watch, and Apple TV. In addition to hardware, Apple offers a variety of services, including AppleCare support, cloud services, and platforms like the App Store for downloading applications and digital content. Apple also provides subscription services like Apple Music, Apple Arcade, Apple News+, and Apple TV+, contributing to its diverse ecosystem. Apple caters to a broad customer base, including consumers, small and mid-sized businesses, and serves education, enterprise, and government markets through various distribution channels, including retail and online stores.
Chevron Corporation, a global energy giant, recently made significant financial moves, reflecting its commitment to enhancing shareholder value. In a noteworthy announcement earlier this year, Chevron's Board of Directors declared a quarterly dividend increase of nine cents per share, reaching a total of $1.51 per share—a remarkable 6 percent surge. This move solidifies Chevron's trajectory, aiming to achieve its 36th consecutive year of annual dividend payout per share growth.
Furthermore, the Board took a strategic step by authorizing a substantial stock buyback program. The authorization, amounting to an impressive $75 billion, is set to commence on April 1, 2023, with no fixed expiration date. This authorization replaces the prior $25 billion repurchase program, which concludes on March 31, 2023, after completing first-quarter repurchases. The flexibility of the program allows Chevron to repurchase shares through various avenues, such as open market transactions, block purchases, or private negotiations, depending on market conditions and economic factors.
Chevron Corporation, a global energy company, operates in integrated energy, chemicals, and petroleum sectors worldwide. Chevron is divided into two main segments: Upstream, which focuses on exploring, developing, and producing crude oil and natural gas, as well as liquefied natural gas operations; and Downstream, which involves refining crude oil, marketing petroleum products, transporting oil and refined products, and manufacturing petrochemicals and additives. Additionally, Chevron is engaged in cash management, debt financing, insurance, real estate, and technology businesses. Originally known as ChevronTexaco Corporation, it changed its name to Chevron Corporation in 2005. Founded in 1879, Chevron is headquartered in San Ramon, California.
Alphabet, the parent company of Google, greenlit a substantial $70 billion in share repurchases, following a similar move announced in April 2022. This decision reflects a strategic approach, considering the dynamic economic landscape that prompted Alphabet to streamline operations, resulting in cost-cutting measures and workforce reductions. Alphabet is keen on navigating market conditions and stock prices judiciously as it contemplates repurchasing both Class A and Class C shares, where the former carries voting rights, and the latter does not.
Alphabet's commitment to stock buybacks has proven effective, evident in Alphabet's 3% surge in extended trading post an impressive revenue report surpassing Wall Street expectations. Notably, in 2022, Alphabet outpaced other major players, second only to Apple, in repurchasing its own stock. Despite the positive market response, share repurchases have become a subject of contention in Washington, with President Joe Biden and some critics arguing against it. However, notable investors like Warren Buffett view share buybacks favorably, emphasizing their impact on enhancing the value of existing shares. As Alphabet continues to navigate this financial landscape, investors are likely to keep a close eye on Alphabet's buyback strategies and their potential impact on stock value.
Alphabet Inc., founded in 1998 and headquartered in Mountain View, California, is a global leader in online advertising services. Operating through its Google and Other Bets segments, Alphabet provides a wide range of products and services, including Ads, Android, Chrome, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube. The Google segment covers digital content, cloud services, hardware devices, and various other offerings, while the Other Bets segment includes diverse businesses such as Access, Calico, CapitalG, GV, Verily, Waymo, and X, along with Internet and television services. Alphabet Inc. has also entered into strategic partnerships, such as a collaboration with Sabre Corporation to develop an artificial intelligence-driven technology platform for travel.
Meta Platforms, Inc. (META) recently disclosed its financials for Q4 and full-year 2022, unveiling a slight decline in revenue but a noteworthy surge in active users across its platforms. Mark Zuckerberg, Meta's founder and CEO, highlighted Meta's focus on enhancing efficiency throughout 2023, aiming for agility and strength.
Despite a 4% dip in revenue to $32.17 billion in Q4 2022 and a 1% drop to $116.61 billion for the full year, Meta experienced a surge in active users, with daily active users reaching 2 billion on Facebook. Notably, their strategic emphasis on AI-driven discovery engines and Reels has been instrumental in this growth.
One pivotal move that caught attention was Meta's authorization of a substantial stock buyback, amounting to $40 billion, supplementing the already ongoing buyback of $27.93 billion in 2022. This decision aligns with Meta's shift towards efficiency, particularly after the announced layoff of approximately 11,000 employees and restructuring efforts focused on consolidating office spaces and data center projects.
Meta Platforms, Inc., formerly known as Facebook, Inc., is a global technology company that develops a diverse range of products facilitating connections and sharing experiences among individuals worldwide. Operating in two key segments, Family of Apps and Reality Labs, Meta's flagship products include Facebook, Instagram, Messenger, and WhatsApp, offering various features for social interaction, content sharing, and communication. In addition, the Reality Labs segment focuses on augmented and virtual reality products, providing hardware, software, and content to enhance connectivity and engagement. Established in 2004 and headquartered in Menlo Park, California, Meta Platforms, Inc. continues to innovate across mobile devices, computers, virtual reality headsets, wearables, and in-home devices, shaping the landscape of digital communication and connectivity.
Wells Fargo made strategic moves earlier this year that are worth noting for investors. Wells Fargo recently greenlit a quarterly common stock dividend of $0.35 per share, payable on September 1, 2023, marking a $0.05 per share increase from the previous quarter. In tandem, the Wells Fargo board of directors authorized a noteworthy $30 billion common stock repurchase program. The decision aligns with Wells Fargo's commitment to maintaining robust capital levels while simultaneously investing in risk and control infrastructure, updating customer capabilities, and supporting employees and communities. CEO Charlie Scharf emphasized their ability to sustain strong capital levels, allowing for the return of excess capital to shareholders. These strategic moves reflect Wells Fargo's dedication to balancing shareholder value with continued investments in key areas, presenting an interesting outlook for investors eyeing the stock's potential.
Wells Fargo & Company, founded in 1852 and headquartered in San Francisco, California, is a leading diversified financial services provider operating internationally. With a network of 7,400 locations, approximately 13,000 ATMs, and offices in 32 countries and territories, Wells Fargo serves individuals, businesses, and institutions. It operates through three segments: Community Banking, offering a range of banking and lending products; Wholesale Banking, providing commercial, corporate, and real estate banking services; and Wealth and Investment Management, offering personalized wealth management, investment, and retirement products. Wells Fargo also offers online and mobile banking services and has a collaboration with the National LGBT Chamber of Commerce.
Goldman Sachs recently authorized a significant stock buyback program, greenlighting the repurchase of shares up to $30 billion. This strategic move, unveiled earlier this year, replaces the previous buyback plan and comes with no fixed expiration date. The decision to accelerate share buybacks was disclosed in Goldman Sachs's latest annual filing, indicating a proactive stance towards returning value to its investors.
In 2022 alone, Goldman Sachs successfully repurchased $3.5 billion worth of shares, signaling a commitment to capital efficiency. The momentum continued into the first quarter of 2023, with an additional $2.25 billion in share repurchases through February 23. Notably, the board has approved repurchases of up to 605 million shares since March 2000, showcasing a sustained effort to enhance shareholder value.
This move follows the suspension of share repurchases in the wake of the 2020 coronavirus crisis, with Goldman Sachs resuming buybacks in the first quarter of 2021. Beyond buybacks, Goldman Sachs has consistently rewarded its shareholders with regular quarterly dividends. The recent 25% increase in the quarterly common stock dividend, coupled with a 2.75% current dividend yield, positions Goldman Sachs as an attractive option for investors seeking both growth and a steady income stream.
Goldman Sachs is a global financial powerhouse with a diversified range of services, operating in four key segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management. In the Investment Banking sector, Goldman Sachs provides financial advisory services, including mergers and acquisitions, corporate defense, and underwriting for various financial instruments. The Global Markets segment is involved in client execution activities across different financial products, while the Asset Management segment oversees a diverse portfolio of assets across various classes. In Consumer & Wealth Management, Goldman Sachs offers wealth advisory, banking services, and private banking to individuals. Established in 1869 and headquartered in New York, Goldman Sachs serves a wide array of clients, including corporations, financial institutions, governments, and individuals.
Visa took a strategic step to enhance shareholder value by announcing a robust financial move. Visa not only increased its quarterly cash dividend by an impressive 16% but also greenlit a substantial multiyear $25 billion share buyback program. This move reflects Visa's confidence in its financial health and a commitment to returning value to its shareholders.
The decision to authorize such a significant stock buyback stems from Visa's financial strength and strategic vision. With a raised quarterly dividend, now standing at 52 cents from the previous 45 cents, Visa aims to provide investors with a more attractive yield, currently at 0.88% based on recent market prices. This shareholder-friendly initiative aligns with Visa's dedication to delivering sustained returns.
Visa Inc. operates as a payments technology company worldwide. Visa facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions. In addition, Visa offers card products, as well as value-added services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands. Visa Inc. has a strategic partnership with NovoPayment to enable financial institutions and merchants to deploy Visa's digital solutions in Latin America and the Caribbean; and a strategic agreement with Intuit Inc. Visa was founded in 1958 and is headquartered in San Francisco, California.
Nvidia, a powerhouse in the chipmaking industry, recently reported impressive results for its fiscal second quarter, surpassing expectations and projecting a robust fiscal third quarter. Nvidia's shares surged by 6% in extended trading, reaching new highs. This upward momentum was fueled by a stellar performance in Q2, with earnings at $2.70 per share, adjusted, exceeding the expected $2.09, and revenue hitting $13.51 billion, significantly higher than the anticipated $11.22 billion.
The key driving force behind Nvidia's success lies in the booming demand for its graphics processing units (GPUs), particularly the A100 and H100 AI chips crucial for generative AI applications. Nvidia's CEO, Jensen Huang, highlighted the significant shift in the data center industry toward accelerated computing and generative AI, contributing to Nvidia's outstanding revenue growth, which doubled from the previous year.
In a strategic move, Nvidia's board of directors greenlit a $25 billion stock buyback initiative, following a $3.28 billion buyback in the previous quarter. This move reflects confidence in Nvidia's financial strength and outlook. The buyback, combined with Nvidia's soaring stock performance, underlines a commitment to maximizing shareholder value. As Nvidia continues to dominate the AI and data center markets, investors are likely to keep a keen eye on Nvidia's future growth prospects and its utilization of the authorized buyback to further enhance shareholder returns.
Nvidiaother products for cloud-based gaming and computing applications. The Tegra Processor segment offers processors for SHIELD devices, self-driving vehicles, medical instruments, and robotics, utilizing the power of mobile-cloud technology to transform home entertainment, AI, and gaming. Founded in 1993 and headquartered in Santa Clara, California, NVIDIA sells its products across diverse markets, including gaming, professional visualization, datacenter, and automotive, serving a wide range of clients from OEMs and system builders to cloud service providers and start-ups.
Booking Holdings Inc., the travel-booking giant encompassing renowned brands like Booking.com, Priceline, and Kayak, recently exceeded Wall Street expectations by reporting a record-breaking revenue of $17 billion for the year 2022. Despite shares initially fluctuating after hours, Booking's CEO, Glenn Fogel, expressed optimism about the sustained demand from travelers and the positive trajectory of summer bookings. The robust performance was underscored by gross travel bookings surpassing analyst projections at $27.3 billion, with room nights booked reaching 211 million.
In a strategic move earlier this year, Booking Holdings authorized a significant stock buyback of $20 billion, signaling confidence in its financial position and a commitment to shareholder value. This decision followed the announcement of Chief Financial Officer David Goulden's upcoming retirement in 2024, with plans for him to consult for Booking until 2026. The buyback, slated to commence after the current $3.9 billion authorization is completed, reflects Booking's anticipation of sustained growth and financial strength.
Analysts praised Booking's impressive fourth-quarter results, reporting net income of $1.23 billion and adjusted earnings of $24.74 a share, beating FactSet estimates. For the full year, net income soared to $3.06 billion, and revenue reached a record $17.1 billion. While specific forecasts were scarce during the earnings call, Goulden hinted at low-teens gross bookings growth for the upcoming year. Booking Holdings Inc. remains a compelling player in the travel industry, with its proactive measures and strong financial performance positioning it for continued success in the evolving market landscape.
Booking Holdings Inc. is a global leader in online travel and restaurant reservations, connecting travelers with a diverse range of accommodation options through platforms such as Booking.com and Agoda. Booking also operates KAYAK, a comprehensive travel search engine, and Priceline, an online travel deal service offering savings on various travel essentials. Additionally, Booking Holdings Inc. manages Rentalcars.com for online car rental reservations and OpenTable, an online platform facilitating restaurant reservations for consumers and providing management services for restaurants. Founded in 1997 and headquartered in Norwalk, Connecticut, Booking, formerly known as The Priceline Group Inc., rebranded as Booking Holdings Inc. in February 2018.
Morgan Stanley (MS) has made strategic moves to enhance shareholder value, unveiling plans to boost its quarterly common stock dividend to $0.85 per share from the existing $0.775 per share, starting in the third quarter of 2023. Simultaneously, the Board of Directors has greenlit a substantial multi-year common equity share repurchase program, totaling up to $20 billion. This buyback initiative, set to kick off in the third quarter of 2023, underscores the firm's confidence in its resilient business model.
James P. Gorman, Morgan Stanley's Chairman and CEO, attributes these decisions to the positive outcomes of the Federal Reserve's stress test, showcasing the robustness of the bank's transformed business model. Gorman emphasizes the commitment to returning capital to shareholders, citing a 7.5 cents increase in dividends and the renewal of a $20 billion share repurchase authorization. These actions reflect the strength of Morgan Stanley's franchise, particularly in Wealth and Investment Management, coupled with a solid capital position.
The catalyst for these shareholder-friendly moves is the release of the CCAR 2023 results by the Board of Governors of the Federal Reserve System on June 28, 2023. Morgan Stanley anticipates a Stress Capital Buffer (SCB) of 5.4% from October 1, 2023, to September 30, 2024. Despite this regulatory requirement, the firm maintains a robust U.S. Basel III Standardized Approach Common Equity Tier 1 (CET1) ratio of 12.9%, exceeding the required standards. This strategic capital deployment positions Morgan Stanley as a compelling investment choice, solidifying its commitment to shareholder value and financial strength.
Morgan Stanley, founded in 1924 and headquartered in New York, is a global financial holding company that offers a wide range of financial products and services to corporations, governments, financial institutions, and individuals across the Americas, Europe, the Middle East, Africa, and Asia. Morgan Stanley operates through three main segments: Institutional Securities, providing capital raising, financial advisory, sales, and trading services; Wealth Management, offering brokerage, investment advisory, financial planning, and banking services to individual investors and businesses; and Investment Management, delivering various investment strategies and products to institutional clients and corporations. With a focus on capital markets, wealth management, and investment solutions, Morgan Stanley plays a prominent role in the global financial landscape.
Salesforce Inc. (CRM.N) unveiled a robust financial outlook, surpassing analysts' projections for the first quarter and bolstering its position in the market. Salesforce.com, a stalwart in cloud-based software, showcased its resilience in the face of activist investor pressure, led by entities like Elliott Management Corp and Starboard Value. Facing concerns about slowing growth, Salesforce responded decisively, doubling its share repurchase to an impressive $20 billion, indicative of its strong cash flow.
The upbeat forecast and stellar fourth-quarter results, boasting a 14% sales increase, propelled Salesforce shares up by 14% in after-hours trading. CEO Marc Benioff's announcement added to the positive momentum, revealing plans to integrate artificial intelligence across all its cloud services, Slack, Tableau, and MuleSoft. RBC analyst Rishi Jaluria noted that this quarter's performance could potentially appease the concerns of activists, giving Salesforce valuable breathing room.
Salesforce.com, Inc. is a global leader in developing enterprise cloud computing solutions, specializing in customer relationship management. Their diverse suite of offerings includes Sales Cloud for data storage, lead monitoring, opportunity forecasting, and analytics; Service Cloud for personalized customer service and support; Commerce Cloud for enhancing customer engagement, conversion, and loyalty; and Marketing Cloud for planning and optimizing one-to-one customer interactions. Salesforce also provides a comprehensive Customer 360 Platform, MuleSoft Anypoint Platform for seamless connectivity, Quip collaboration platform, and analytical tools such as Tableau and Einstein Analytics. Catering to various industries, Salesforce offers solutions for financial services, healthcare, manufacturing, consumer goods, government, and philanthropy. Founded in 1999 and headquartered in San Francisco, California, Salesforce.com serves its clients through direct sales and partnerships with consulting firms and systems integrators, with notable collaborations like the strategic partnership with Siemens. Salesforce not only delivers innovative solutions but also provides professional services, education programs, and robust support and adoption initiatives.
Linde plc (LIN) recently made strategic moves to enhance shareholder value, solidifying its commitment to investors. Linde's Board of Directors not only declared a robust quarterly dividend of $1.275 per share, payable on December 18, 2023, to shareholders of record on December 4, 2023, but also greenlit a substantial share repurchase program. This initiative, amounting to a staggering $15 billion, comes on the heels of a prior buyback authorization in February 2022, where $2 billion remained unutilized.
Linde plc operates as an industrial gas company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific. Linde offers oxygen, nitrogen, argon, rare gases, carbon monoxide, carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. It also designs and constructs turnkey process plants, such as olefin, natural gas, air separation, and hydrogen and synthesis gas plants. Linde serves healthcare, petroleum refining, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, and water treatment industries. Linde plc was founded in 1879 and is based in Guildford, the United Kingdom.
Home Depot®, the leading home improvement retailer, disclosed sales of $42.9 billion for Q2 fiscal 2023, reflecting a 2.0% decrease from the previous year. Despite a decline in comparable sales, Ted Decker, the chair, president, and CEO, expressed satisfaction with the overall performance. Notably, smaller project categories showed strength, though certain big-ticket discretionary areas faced continued pressure.
Against this backdrop, Home Depot® reported net earnings of $4.7 billion, or $4.65 per diluted share, for Q2 fiscal 2023, compared to $5.2 billion, or $5.05 per diluted share, in the same period last year. Despite challenges, Home Depot remains optimistic about the medium-to-long term outlook for home improvement and market share growth.
To fortify its position and signal confidence in its future prospects, Home Depot's board of directors authorized a significant move—a new $15 billion share repurchase program, effective August 15, 2023, replacing the previous authorization. This decision reflects Home Depot's strategic approach to capital allocation, demonstrating a commitment to enhancing shareholder value.
The Home Depot, Inc. is a leading home improvement retailer with a vast network of 2,293 retail stores across 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. Established in 1978 and headquartered in Atlanta, Georgia, Home Depot offers a diverse range of building materials, home improvement products, lawn and garden supplies, and décor items. Serving both do-it-yourself and professional customers, The Home Depot provides installation services, home maintenance programs, and professional service initiatives. Home Depot's extensive product offerings, including flooring, cabinets, countertops, furnaces, central air systems, and windows, are complemented by online sales and tool/equipment rental services.
Novartis, a leading player in the pharmaceutical industry, recently announced a robust second-quarter performance, marked by a 9% growth in sales and a 17% increase in core operating income. This impressive growth was primarily driven by the continued success of key products such as Entresto, Kesimpta, Pluvicto, and Kisqali. Novartis's Innovative Medicines segment saw a remarkable 20% surge in core operating income, reaching a core margin of 39.0%, showcasing the strength of its core therapeutic areas.
In a strategic move earlier this year, Novartis authorized a significant share buyback of up to USD 15 billion, scheduled for completion by the end of 2025. This decision aligns with Novartis's focus on becoming a "pure-play" Innovative Medicines business, concentrating on core therapeutic areas with substantial growth potential. The buyback also reflects Novartis' confidence in its robust balance sheet and future growth prospects, allowing flexibility for strategic acquisitions.
Furthermore, Novartis's CEO, Vas Narasimhan, highlighted the broad-based growth across key geographies and therapeutic areas, contributing to an upgraded guidance for the full year 2023. Novartis is set to separate its Sandoz division through a 100% spin-off, emphasizing its commitment to strategic rationalization. As the pharmaceutical giant navigates its dynamic landscape, the share buyback and focused strategy position Novartis for sustained growth and continued leadership in the pharmaceutical sector.
Novartis AG, headquartered in Basel, Switzerland, is a global healthcare company specializing in researching, developing, manufacturing, and marketing a diverse range of healthcare products. Its Innovative Medicines segment focuses on prescription medicines across various therapeutic areas, including ophthalmology, neuroscience, immunology, hepatology, dermatology, respiratory, cardio-metabolic, and cardiovascular, renal, and metabolism medicine. The Sandoz segment provides active ingredients and finished dosage forms of pharmaceuticals to third parties, covering therapeutic areas such as anti-infectives. Novartis AG also engages in collaborations with various organizations and institutions to advance research and development. Established in 1895, Novartis continues to play a significant role in the global healthcare industry.
Mastercard Incorporated (MA) took a bold step to enhance shareholder value by announcing a substantial increase in its quarterly cash dividend and a new share repurchase program. The Board of Directors, recognizing Mastercard's strong financial position, declared a 16 percent boost in the quarterly cash dividend to 66 cents per share, up from 57 cents per share. This move signals Mastercard's commitment to rewarding its investors and underscores its confidence in future growth.
Simultaneously, the Board approved a new share repurchase program, allowing Mastercard to buy back up to $11 billion of its Class A common stock. This decision follows the successful completion of the previous $9 billion repurchase program in December 2022, with approximately $3.5 billion still available for share buybacks as of December 1, 2023. Mastercard's leadership believes that the stock buyback program not only reflects its optimistic outlook on future performance but also underscores its dedication to efficient capital allocation, thereby maximizing shareholder value.
Mastercard Incorporated, a global technology company founded in 1966 and headquartered in Purchase, New York, specializes in transaction processing and payment-related products and services. Serving a diverse range of clients, including account holders, merchants, financial institutions, businesses, governments, and organizations worldwide, Mastercard facilitates payment transactions through authorization, clearing, and settlement processes. Mastercard's integrated offerings encompass credits, prepaid payment programs, commercial payment solutions, and value-added services such as cyber and intelligence products, information and analytics services, and loyalty programs. Operating under brands like MasterCard, Maestro, and Cirrus, Mastercard plays a pivotal role in the evolving landscape of digital payments.
Netflix showcased strong Q3 financial performance, surpassing revenue forecasts with a notable $8.5B, accompanied by a robust operating margin of 22.4%. Bolstered by an uptick in paid memberships and strategic content additions like One Piece S1 and The Witcher S3, Netflix demonstrated resilience amidst industry challenges, particularly the writers and actors strikes. Netflix remains committed to resolving these issues swiftly.
A key highlight of the update was Netflix's decision to authorize a stock buyback. In Q3 alone, Netflix repurchased $2.5B in shares and expanded its buyback authorization by an additional $10B. This move is reflective of Netflix's confidence in its financial outlook, with a revised FY23 free cash flow projection of approximately $6.5B, up from the previous estimate of at least $5B. The buyback aligns with Netflix's commitment to delivering value to shareholders and signals optimism about future prospects.
The stock buyback coincides with Netflix's sustained efforts to enhance engagement and diversify content offerings globally. With over 70% of its members outside the US, Netflix is investing in local stories, exemplified by hits like Dear Child (Germany) and Sintonia S4 (Brazil). The success of its ad plan, witnessing a nearly 70% quarter-over-quarter growth, also contributes to the positive outlook. As Netflix adapts to the evolving competitive landscape, the buyback positions Netflix strategically for future growth, reflecting a nuanced response to recent industry challenges and a proactive stance in capitalizing on emerging opportunities.
Netflix, Inc. provides subscription streaming entertainment service. It offers TV series, documentaries, and feature films across various genres and languages. Netflix provides members the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services. Netflix has approximately 167 million paid members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.
General Motors (GM) has unveiled a series of investor-focused initiatives to regain Wall Street's confidence in 2024, following a challenging year marked by labor strikes and setbacks in its electric and autonomous vehicle plans. GM's CEO, Mary Barra, announced a 33% increase in the quarterly dividend to 12 cents per share, an accelerated $10 billion share repurchase program, and the reinstatement of its 2023 guidance, reflecting an estimated $1.1 billion impact from six weeks of U.S. labor strikes.
The stock buyback, a key component of GM's strategy, aims to address increased costs resulting from new labor deals in the U.S. and Canada. The UAW agreement, which includes significant hourly pay raises and enhanced benefits, is expected to raise costs by $9.3 billion. Despite these challenges, GM remains optimistic about its long-term plans, emphasizing a commitment to reducing capital intensity, improving product development efficiency, and cutting fixed and variable costs.
GM's stock saw a notable 9.4% jump following the announcements, countering a prior 14.1% decline earlier in the year. Barra acknowledged disappointment in General Motors's 2023 production of next-generation EVs but expressed confidence in significantly higher Ultium EV production and improved margins in the future. The accelerated stock buyback, totaling $10 billion, reflects GM's efforts to navigate uncertainty, maintain credit ratings, and bolster investor confidence amid evolving market conditions.
General Motors Company, established in 1908 and headquartered in Detroit, Michigan, is a global leader in designing, manufacturing, and selling cars, trucks, crossovers, and auto parts. Operating through segments like GM North America, GM International, Cruise, and GM Financial, General Motors markets its vehicles under renowned brand names such as Buick, Cadillac, Chevrolet, and GMC. In addition to retail sales, it caters to fleet customers and offers safety services, connected features, and automotive financing. GM is at the forefront of innovation with services like automatic crash response, roadside assistance, and smart vehicle diagnostics, contributing to its prominence in the automotive industry.
The Cigna Group (CI) has given the green light to an incremental $10 billion share repurchase authorization, elevating its total share repurchase authority to $11.3 billion. The decision reflects The Cigna Group's belief that its shares are currently undervalued, presenting an opportune moment for a value-enhancing deployment of capital. According to David M. Cordani, Chairman and CEO of The Cigna Group, the focus is on supporting high-quality care, enhancing affordability, and improving health outcomes.
The Cigna Group plans to utilize the majority of its discretionary cash flow for share repurchase in 2024, targeting a minimum of $5 billion in common stock buybacks by the end of the first half of 2024. A portion of this repurchase is slated to occur through an accelerated share repurchase program in the first quarter of 2024. Cordani expressed confidence in Cigna's trajectory, citing a consistent annualized EPS growth of over 13% in the past decade. The Cigna Group's outlook for 2023 and 2024 remains robust, with a reaffirmed expectation of at least $24.75 per share for full-year 2023 and a target of at least $28 per share for 2024.
Cigna Corporation, founded in 1792 and headquartered in Bloomfield, Connecticut, is a leading provider of insurance and related services operating through various segments. The Health Services segment offers pharmacy benefits management, clinical solutions, home delivery, and health management services. The Integrated Medical segment provides a range of medical, pharmacy, dental, vision, and behavioral health products to insured and self-insured clients, including Medicare and Medicaid plans. The International Markets segment focuses on supplemental health, life, and accident insurance products globally. The Group Disability and Other segment offers group long-term and short-term disability, life, accident, and specialty insurance products. Cigna distributes its products through various channels, including insurance brokers, consultants, and direct-to-employers. The Cigna Group has a strategic alliance with Priority Health to enhance health care coverage accessibility in Michigan.
Raytheon Technologies Corporation (RTX), a prominent player in the aerospace industry, revealed robust quarterly earnings despite challenges in its Pratt and Whitney unit due to a quality crisis. The discovery of microscopic contaminants in engine components led to a major setback, with 700 engines requiring extensive inspections. However, RTX swiftly addressed the issue, expanding inspections and ensuring a comprehensive resolution within the anticipated timeframe.
In response to the positive performance of its Collins Aerospace business, which saw a remarkable 22% increase in profit to $903 million, RTX announced a $10 billion share repurchase program. This initiative is set to be funded through a combination of short and long-term debt, reflecting RTX's confidence in its financial outlook.
Notably, despite the operating loss of $2.48 billion related to engine recalls at Pratt and Whitney, RTX exceeded Wall Street expectations, reporting an adjusted profit of $1.25 per share and adjusted revenue of $18.95 billion. RTX's optimistic outlook for 2023, with an increased sales forecast and adjusted earnings per share expectations, further solidifies its resilience in the market. Additionally, RTX's decision to sell its Cybersecurity, Intelligence, and Services business for around $1.3 billion showcases a strategic focus on core strengths. Overall, RTX's recent moves reflect a calculated response to challenges, underlining its commitment to long-term growth and value creation for shareholders.
Raytheon Technologies Corporation, a global aerospace and defense company headquartered in Waltham, Massachusetts, operates in four distinct businesses: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. These business units provide advanced systems and services for a wide range of customers, including commercial, military, and government sectors worldwide. Collins Aerospace Systems focuses on aerostructures, avionics, interiors, mechanical systems, mission systems, and power and control systems, serving various aviation sectors. Pratt & Whitney specializes in designing, manufacturing, and servicing aircraft engines and auxiliary power systems for commercial, military, and business aircraft. Raytheon Intelligence & Space develops sensors, training, and cyber and software solutions, while Raytheon Missiles & Defense produces advanced technologies such as air and missile defense systems, precision weapons, radars, and command and control systems to address diverse threats with end-to-end solutions.
Honeywell International Inc. took a strategic step by authorizing a stock buyback program, allowing the repurchase of up to $10.0 billion of its common stock. This decision, greenlit by the Board of Directors on April 24, 2023, includes approximately $2.1 billion from the remaining availability under a previously announced $10.0 billion share repurchase authorization. Honeywell plans to execute repurchases through various methods, such as open market purchases, accelerated share repurchase transactions, negotiated block transactions, and other structured approaches, with the flexibility to amend or terminate the program at any time.
Honeywell's move to repurchase its own stock signals a strategic focus on optimizing shareholder value. The Board's decision aligns with Honeywell's objectives to offset the dilutive impact of employee stock-based compensation plans and reduce the outstanding share count when favorable opportunities arise. The authorization, which has no set expiration date, underscores Honeywell's commitment to adapt to market conditions and align repurchases with its operational and financial activities. With 665,430,951 shares of common stock outstanding as of April 19, 2023, this stock buyback initiative reflects Honeywell's confidence in its future prospects and its proactive approach to enhancing shareholder returns. Investors may find this move indicative of Honeywell's positive outlook and commitment to delivering long-term value.
Honeywell International Inc., founded in 1985 and based in Charlotte, North Carolina, is a global technology and manufacturing company operating across various segments. Its Aerospace division specializes in a wide range of aviation products and services, including power units, avionics, controls, and maintenance solutions. The Honeywell Building Technologies segment focuses on advanced software, control systems, and equipment for energy management, security, and monitoring in buildings. Additionally, its Performance Materials and Technologies sector offers automation control, catalysts, and materials for various industries, while the Safety and Productivity Solutions unit provides safety gear, cloud-based emergency messaging, warehouse automation, and productivity solutions.
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