Discover the technology stocks with the biggest stock buyback authorizations last month, May
Buybacks
June 18, 2023
Synopsys, Inc. recently authorized a stock buyback, entering into an accelerated share repurchase agreement (ASR) with Mizuho Markets Americas LLC. The agreement allows Synopsys to repurchase $300 million worth of its own stock. As per the terms, Synopsys will initially receive approximately 645,000 shares, with the remaining shares, if any, to be settled by August 11, 2023. The final number of repurchased shares will be determined based on the average daily volume-weighted average share prices during the repurchase period, with a discount applied. This stock buyback demonstrates Synopsys' confidence in its financial position and long-term prospects, as well as its commitment to returning value to shareholders. Investors may view this move positively, considering the potential benefits of reducing outstanding shares, enhancing earnings per share, and signaling management's belief in Synopsys's intrinsic value.
NetApp, a leading data management and storage solutions company, reported net revenues of $1.58 billion for the fourth quarter and $6.36 billion for fiscal year 2023. NetApp's focus on digital transformation projects, hybrid and multicloud infrastructure, and data management has yielded solid results. NetApp introduced significant innovations, including the C-series, a new family of all-flash storage systems, and NetApp Advance, a portfolio of storage programs to future-proof on-premises environments. Recognized for its industry leadership, NetApp received Outperformer placements in GigaOm's Radar reports for storage. With strong financial performance, NetApp returned $1.28 billion to shareholders and authorized a new $1 billion stock repurchase. These decisions reflect NetApp's confidence in its ability to drive long-term growth and deliver value to customers, partners, and shareholders.
Conduent Incorporated, a global technology-led business solutions and services company (NYSE: CNDT), has recently authorized a share repurchase program of up to $75 million of Conduent's common stock over the next three years. According to Cliff Skelton, Conduent's President and CEO, this move reflects Conduent's confidence in its business strategy, growth opportunities, and commitment to delivering long-term value to shareholders. The repurchase program, funded by Conduent's cash on hand, will be executed through open market transactions and may include Rule 10b5-1 trading plans. It should be noted that Conduent is not obligated to acquire any specific number of shares, and the program may be adjusted or discontinued at Conduent's discretion. This announcement signifies Conduent's belief in its cash flow trajectory, balance sheet strength, and portfolio rationalization program, further reinforcing their position as an attractive investment opportunity.
Commvault, a leading data management company (CVLT), recently reported its financial results for the fourth quarter and fiscal year ended March 31, 2023. Despite a slight decrease in total revenues for the quarter, Commvault achieved a 15% year-over-year growth in its annualized recurring revenue (ARR), reaching $668.4 million, mainly driven by the success of its Metallic as-a-service offerings. Services revenue also saw a 7% increase in the fourth quarter, while software and products revenue remained relatively flat. Commvault's CEO, Sanjay Mirchandani, expressed confidence in Commvault's future prospects and its ability to meet customers' evolving needs. In line with its positive financial performance and strong cash flow, Commvault authorized a stock buyback program, with $250 million available for repurchasing its common stock. This decision reflects management's belief in Commvault's long-term value and serves as a strategic move to optimize shareholder returns. The stock buyback program also signifies Commvault's commitment to its investors and demonstrates their confidence in Commvault's future growth potential.
ServiceNow, the leading digital workflow company focused on improving productivity, has recently announced its first-ever share repurchase program. Authorized by the Board of Directors, this program allows ServiceNow to buy back up to $1.5 billion in common stock. The main purpose of this initiative is to manage dilution resulting from future employee equity grants and stock purchase programs. According to ServiceNow CFO Gina Mastantuono, the decision to authorize the stock buyback reflects their belief in ServiceNow's growth potential and their commitment to delivering exceptional value to shareholders. With the flexibility to repurchase shares through various methods, including open market purchases and privately negotiated transactions, ServiceNow aims to use its strong cash flow generation to strategically manage dilution and drive long-term shareholder value. The timing and specifics of the repurchases will be determined by ServiceNow based on a range of factors, including prevailing market conditions and regulatory requirements.
Aspen Technology, Inc. (AspenTech), a global leader in industrial software, has recently announced the authorization of a new share repurchase program. Aspen Technology's Board of Directors has approved the repurchase of up to $100 million of its outstanding shares of common stock in fiscal years 2023 and 2024. This program includes an accelerated share repurchase (ASR) agreement with JPMorgan Chase Bank, National Association, enabling the repurchase of AspenTech's common stock. The final settlement of these transactions is anticipated to occur in the first quarter of fiscal year 2024, subject to early acceleration by JPMorgan. While AspenTech's primary focus remains on strategic growth through acquisitions, Aspen Technology's strong balance sheet and recurring cash flows have allowed for this buyback program, aligning with their capital allocation strategy. This move showcases AspenTech's commitment to maximizing shareholder value while maintaining a long-term growth trajectory.
Silicom Ltd. (SILC), a leading provider of high-performance networking and data infrastructure solutions, reported its Q1'23 financial results, revealing $37.2 million in revenues and a non-GAAP EPS of $0.61. With a leveraged business model showing promising results, Silicom experienced a 16% revenue growth and a significant 38% increase in non-GAAP EPS. In light of its strong performance and available working capital, Silicom's Board of Directors authorized a one-year share buyback plan, allowing for a potential investment of up to $15 million in the repurchase of its ordinary shares. The decision to authorize the stock buyback may have been influenced by Silicom's positive financial performance and outlook, indicating confidence in its future prospects. This news suggests that Silicom aims to enhance shareholder value by leveraging its available capital and capitalizing on potential undervaluation in the market.
Calix, Inc. (CALX) recently announced that it has reaffirmed its second quarter 2023 guidance, which was initially provided on April 19, 2023. The guidance includes revenue estimates of $255 million to $261 million, with a gross margin of 51.0% to 53.0% (non-GAAP) and operating expenses ranging from $105.0 million to $108.0 million. Calix also expects a net income per diluted common share of $0.28 to $0.34 (non-GAAP). In addition, Calix's Board of Directors approved an amendment to the $100 million stock repurchase program, removing the end date of July 15, 2023. The program will now continue until it is suspended or discontinued, allowing Calix flexibility in acquiring its common stock. Currently, Calix has repurchased $10 million worth of its common stock at an average price of $44.53 per share. This decision could indicate Calix's confidence in its future prospects and its belief that its stock is undervalued.
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