Discover the consumer defensive stocks with the biggest stock buybacks last quarter, Q1 2023
Altria Group, Inc. recently completed a $3.5 billion share repurchase program, repurchasing 8.3 million shares at an average price of $45.09 in the fourth quarter. For the full year, they repurchased 38.1 million shares at an average price of $47.83, amounting to a total cost of $1.8 billion. As part of their capital management strategy, Altria Group's Board of Directors authorized a new $1 billion share repurchase program, expected to be completed by December 31, 2023. This decision reflects their confidence in the market conditions and aligns with their commitment to enhancing shareholder value. Recent developments, such as strong financial performance and progress in their smoke-free portfolio, may have contributed to the stock buyback authorization. The stock buyback prospects look promising, considering Altria's focus on balancing earnings growth, strategic investments, and delivering positive adjusted diluted EPS growth in the range of 3% to 6% for 2023.
Costco Wholesale Corporation, a leading retail company, has announced the reauthorization of a stock buyback program worth $4 billion. This program, set to expire in January 2027, replaces the previous program which was scheduled to expire in April 2023. The decision to authorize the stock buyback reflects Costco's confidence in its financial position and a commitment to returning value to its shareholders. Costco currently operates 847 warehouses across various countries and also operates e-commerce sites in multiple regions. Costco's decision to repurchase its stock may be influenced by recent positive developments, such as strong financial performance and growth prospects. By buying back its own shares, Costco aims to enhance shareholder value and potentially boost its stock price. However, it is important to consider various factors, such as economic conditions, competition, and regulatory impacts, that may affect the success of the stock buyback program.
Mondelēz International, Inc. reported strong fourth quarter 2022 results, showcasing Mondelēz International's portfolio's strength and diversification with broad-based growth across regions, categories, and brands. Mondelēz International achieved double-digit top-line growth driven by both pricing and volume, resulting in robust cash flow generation and significant returns to shareholders. As part of their strategy to accelerate growth and focus on resilient categories like chocolate, biscuits, and baked snacks, Mondelēz authorized a stock buyback of up to $6.0 billion of their Class A common stock through December 31, 2025. This decision was likely influenced by their successful financial performance, including strong gross profit dollar growth and the contribution of recently acquired businesses. Mondelēz International's commitment to delivering marketplace execution amid challenging conditions and macroeconomic volatility also contributed to the stock buyback authorization. Looking ahead to 2023, Mondelēz expects continued growth with a projected Organic Net Revenue growth of 5 to 7 percent, high single-digit Adjusted EPS growth, and anticipated Free Cash Flow of $3.3+ billion, acknowledging the volatility posed by COVID-19 and geopolitical uncertainties.
Chegg, Inc., the student-first connected learning platform, has recently authorized a stock buyback program as part of its commitment to enhancing shareholder value. Chegg has entered into an accelerated share repurchase agreement (ASR) with J.P. Morgan Chase Bank, National Association to repurchase $150 million of Chegg's common stock. This decision is fueled by Chegg's confidence in its ability to leverage advancements in technology, its proprietary content, data, and expertise to shape the rapidly evolving education landscape. The ASR transaction will be effectuated under Chegg's previously announced $2.0 billion securities repurchase program, with $492.6 million remaining available after the completion of this buyback. This move demonstrates Chegg's financial strength, its commitment to generating significant free cash flow, and its dedication to driving shareholder value.
Afya Limited recently authorized a stock buyback program, following the completion of its third share repurchase initiative. Afya's Board of Directors approved the new program, allowing for the repurchase of up to 2,000,000 of its outstanding Class A common shares. This represents approximately 5.8% of Afya's free float, in accordance with conditions set by the Board on March 23, 2023. To facilitate the repurchases, Afya will enter into a written trading plan with BofA Securities, Inc., acting as the independent broker-dealer. The plan aims to comply with Rule 10b5-1 and Rule 10b-18 under the Securities and Exchange Act of 1934. Afya intends to utilize the repurchased shares for its stock option program, future business combinations, and general corporate purposes, funding the buybacks through existing funds, future dividends, and strike price funds from option exercises. The exact number of shares to be repurchased is discretionary and dependent on market conditions. Afya retains the right to suspend or discontinue the plan at its discretion, while ensuring compliance with applicable laws to benefit from the safe harbors provided by Rules 10b-18 and 10b5-1.
All data was sourced from LevelFields AI
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