These Consumer Cyclical Stocks Announced Huge Stock Buybacks Last Quarter, Q2 FY 2023

Discover the consumer cyclical stocks with the biggest stock buyback authorizations last quarter, Q2 FY 2023



Industry: Apparel Retail

Designer Brands Inc. (DBI), a leading global designer, producer, and retailer of footwear and accessories, has recently authorized a stock buyback program. Designer Brands has commenced a modified "Dutch Auction" tender offer, aiming to repurchase up to $100 million in value 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 tender their shares at a price within the range of $7.00 to $8.00 per share. The closing price of Designer Brands's Class A common shares on June 7, 2023, was $7.21 per share. The tender offer is being financed through a term loan agreement of $135 million. This stock buyback is authorized to improve shareholder value and demonstrates Designer Brands' confidence in its financial position and growth prospects. The offer expires on July 7, 2023, and shareholders have the opportunity to participate and potentially sell their shares at the determined price.


Industry: Internet Retail

ContextLogic Inc., operating as Wish, a leading global mobile ecommerce platform, has recently authorized a share repurchase program allowing the repurchase of up to $50 million in shares of its Class A common stock. The decision to authorize this stock buyback stems from ContextLogic's belief in the current macroeconomic environment and the strength of its balance sheet, which presents an opportune moment to invest in its own stock. Wish's management and Board of Directors express confidence in the future of the business and their commitment to generating long-term, sustainable value for shareholders. By implementing this share repurchase program, Wish aims to unlock the potential and long-term value that they believe the market is currently undervaluing. ContextLogic will assess various factors, including business conditions, market trends, and regulatory requirements, to determine the timing, manner, and quantity of repurchases. The program is effective until December 31, 2023, subject to potential suspension, termination, or modification at any time without obligating ContextLogic to purchase a specific number of shares.


Industry: Internet Retail

a.k.a. Brands Holding Corp., a leading brand accelerator specializing in next generation fashion brands, recently announced the approval of a share repurchase program. Under this program, a.k.a. Brands has been authorized to repurchase shares of its common stock, with a total value of up to $2 million. The decision to authorize the stock buyback was driven by several factors, including a.k.a. Brands's available liquidity, prevailing market and economic conditions, potential alternative uses for capital, and other relevant considerations. Share repurchases may occur through various channels, such as open market transactions, block trades, or private transactions, adhering to all applicable securities laws and regulations. a.k.a. Brands may also employ a trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934, allowing repurchases during self-imposed trading blackout periods or other regulatory limitations. It's important to note that a.k.a. Brands is not obligated to repurchase a specific number of shares, and the Share Repurchase Program can be suspended or terminated at any time without prior notice. The decision reflects a strategic move to optimize shareholder value and underscores a.k.a. Brands's confidence in its future prospects. Recent news and developments may have contributed to the stock buyback authorization, further reinforcing the positive outlook for both a.k.a. Brands and its potential for long-term growth.


Industry: Restaurants

Muscle Maker, Inc. (GRIL) has announced the authorization of a share repurchase program, allowing for the repurchase of up to $2 million of GRIL outstanding common stock. The decision comes as Muscle Maker experienced a significant operational milestone, reporting its first profitable quarter since becoming a public company. Muscle Maker's newly formed subsidiary, Sadot LLC, has been instrumental in driving revenue growth, with $58.5 million and $58.0 million generated in January and February respectively. Muscle Maker recognizes that its story remains largely unknown and its shares undervalued due to a lack of analyst coverage and institutional sponsorship. By repurchasing shares, Muscle Maker aims to express management's confidence in its vision and strategy, while creating value for shareholders. This decision is part of a broader work-plan to increase investor awareness and confidence. The timing and specifics of the share repurchases will be determined based on market conditions, stock price, and regulatory constraints.


Industry: Apparel Retail

Genesco Inc. (GCO) recently announced that its board of directors has approved a $50 million increase to its existing share repurchase program, which was initially set at $200 million. This decision comes as Genesco continues its ongoing commitment to returning value to shareholders. Notably, since September 2019, Genesco has repurchased 3.9 million shares, amounting to approximately $189.5 million in total cost. This brings the remaining authorization under the existing program to $10.5 million. Additionally, during the current quarter alone, Genesco repurchased approximately 676,000 shares at a total cost of $14.5 million, with an average price of $21.41 per share. Overall, these repurchases, which started in December 2018, have accounted for over 46% of the shares outstanding at the time. The new authorization allows for flexibility in implementing the repurchases through various methods, such as open market purchases, private transactions, block trades, or a combination of these, in accordance with relevant legal requirements. The timing, prices, and sizes of the repurchases will be determined based on factors like prevailing stock prices, market conditions, and other relevant considerations. It's important to note that the repurchase program is not binding, and Genesco retains the right to suspend or discontinue it at any time at its discretion.

All data was sourced from LevelFields AI

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