Discover the consumer cyclical stocks with the biggest stock buybacks last quarter, Q1 2023
Buybacks
June 19, 2023
Victoria's Secret & Co. announced today that it will enter into an accelerated share repurchase agreement ("ASR") with Goldman Sachs & Co. LLC ("Goldman Sachs") to repurchase $125 million of Victoria's Secret's common stock. This decision is part of the January 2023 Share Repurchase Program, which authorizes the repurchase of up to $250 million of Victoria's Secret's common stock. The ASR will be finalized in the second quarter of 2023, and it is expected to contribute to Victoria's Secret's broader goal of enhancing shareholder value. Concurrently, Victoria's Secret has revised its fourth-quarter 2022 sales, operating income, and earnings per share guidance, with better-than-expected performance. The CEO, Martin Waters, expressed confidence in Victoria's Secret's strategies, highlighting successful execution and inventory management during challenging economic conditions. He emphasized Victoria's Secret's focus on evolving, innovating, and pursuing organic growth strategies for the future, including the integration of recently acquired business Adore Me and plans for international expansion.
Signet Jewelers Limited ("Signet") announced its results for the 13-week and 52-week periods ending January 28, 2023. Despite challenges in the jewelry retail environment, Signet achieved its key priorities and is confident in its competitive advantages and growth prospects. In line with its commitment to driving shareholder returns, Signet has authorized a stock buyback program, increasing it by $263 million to a total authorization of approximately $775 million.
Rover Group, Inc. ("Rover"), the world's largest online marketplace for pet care, reported strong financial results for Q4 and full year 2022, with notable increases in revenue, GBV, and total bookings. In light of its robust performance and positive cash outlook, Rover's board of directors has authorized a $50 million share buyback program. This move aims to offset dilution resulting from employee equity incentive compensation programs and leverage Rover's solid balance sheet. The share repurchases, which may occur through open market or privately negotiated transactions, will be determined by management based on various factors, including stock price, market conditions, and other business considerations. With approximately $273 million in cash and cash equivalents as of December 31, 2022, Rover is well-positioned to fund the buyback program.
Playa Hotels & Resorts N.V. recently announced its financial results for the three months and year ended December 31, 2022, reporting positive growth across various key metrics. Playa's Board of Directors has authorized a new $200.0 million share repurchase program, replacing a previous $100.0 million repurchase authorization. This decision reflects Playa's confidence in its financial performance and its belief that its stock is undervalued. Playa Hotels & Resorts experienced robust demand in 2023, with strong bookings and revenue growth. Playa's CEO, Bruce D. Wardinski, highlighted the favorable market for all-inclusive resorts and expressed optimism about the recovery in Jamaica and the Dominican Republic.
Asbury Automotive Group, Inc. (ABG), a leading automotive retail and service company in the U.S., recently authorized a stock buyback program, increasing the total repurchase authorization to $200 million. The decision was driven by Asbury Automotive's strong cash flow and solid balance sheet, which have been bolstered by effective business model execution. In 2022, Asbury repurchased approximately 1.6 million shares of its common stock for $287 million, and year-to-date in 2023, it has already repurchased around 115,000 shares for $20 million. The share repurchase program allows Asbury to buy back shares through open market transactions, privately negotiated deals, and other legal means, subject to regulatory requirements. It's worth noting that the program is flexible and may be modified, suspended, or terminated at any time without further notice.
MGM Resorts International, a leading hospitality and entertainment company, reported strong financial results for the fourth quarter and full year 2022, highlighted by record-breaking Adjusted Property EBITDAR in Las Vegas Strip Resorts and Regional Operations. MGM Resorts's exceptional performance and positive outlook have prompted the authorization of a new $2 billion share repurchase program by the Board of Directors. In addition to the $2.8 billion in share buybacks completed in 2022, MGM Resorts aims to further return capital to shareholders and take advantage of MGM Resorts's compelling yield.
All data was sourced from LevelFields AI
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