Discover the consumer defensive stocks with the biggest stock buyback authorizations last quarter, Q2 FY 2023
Buybacks
July 3, 2023
Coursera, Inc., a leading online learning platform, recently announced the approval of a share repurchase program, authorizing the purchase of up to $95 million of Coursera's common stock. The primary objective of this program is to counteract the potential dilution resulting from employee stock issuances granted in 2022, which were aimed at attracting and retaining key talent crucial to Coursera's growth. By implementing this strategic move, Coursera's Board of Directors and Management display their confidence in the business and emphasize the value they place on shareholder equity. The authorized amount was determined based on market analysis conducted by an independent advisor, benchmarking the gross dilution rate of companies in their first year after an initial public offering. This buyback authorization aligns with Coursera's capital allocation strategy, which prioritizes long-term growth while showcasing scalability and leverage over time. Coursera may repurchase shares through various methods, including open market purchases and privately negotiated transactions, with the timing and quantity dependent on a range of factors such as market conditions, legal requirements, and prevailing stock prices. Coursera intends to fund these repurchases using its existing cash and cash equivalents, leveraging its strong balance sheet to invest in the platform and solidify its position as a leader in the higher education transformation.
Vitru Limited (VTRU), a leading company in the education sector, has recently announced the approval of a share buyback program. The Board of Directors has authorized the repurchase of up to 500,000 common shares, a move aimed at increasing shareholder value. The buybacks may occur through open market purchases or negotiated transactions, in accordance with applicable regulations such as Rules 10b5-1 and 10b-18 under the Exchange Act. The program is expected to be financed using Vitru's own cash balances derived from retained and future earnings. Based on the closing share price of May 10, 2023, the buybacks could amount to approximately R$37.5 million, representing 18.3% of the consolidated Adjusted Net Income of 2022. Mr. Carlos Freitas, Vitru's Chief Financial and Investor Relations Officer, expressed confidence in the long-term growth prospects of Vitru, underscoring their commitment to creating value for shareholders. The specific details of the buyback transactions, including prices and timing, will be determined by Vitru at its discretion, considering market conditions and other relevant factors. The Board of Directors will periodically review the program and may adjust its terms and size as necessary. It's important to note that the share buyback program is not a binding commitment and can be suspended or discontinued at any time.
ARKO Corp., a Fortune 500 company and prominent convenience store operator in the US, recently announced an expansion of its share repurchase program, authorizing an additional $50 million for this purpose. With a total availability of approximately $59 million for repurchasing outstanding common stock, ARKO's Board of Directors views this move as a compelling use of capital resources. Arie Kotler, Chairman, President, and CEO of ARKO, highlighted the success of ARKO's initiatives and merchandise and fuel strategy, resulting in strong quarterly results. By prioritizing stockholder value creation, ARKO's increased repurchase program aligns with its capital allocation framework, complementing growth strategies and capital returns. The program's flexibility allows for various repurchase methods, including open market purchases, private negotiations, and accelerated share repurchase agreements.
Post Holdings, Inc. (POST), a leading consumer packaged goods holding company, has recently authorized a $400 million share repurchase program. This decision reflects the confidence of Post's Board of Directors in the long-term value of Post's stock. The new authorization, which commenced on June 7, 2023, follows the completion of a previous $300 million share repurchase program that began on September 3, 2022, and concluded on June 6, 2023, with approximately $189 million in shares repurchased. Post's stock buyback strategy allows for flexibility in executing repurchases, including through open market transactions, private purchases, and other methods. Post Holdings, Inc. retains the right to suspend or terminate the repurchases at any time, and any repurchased shares will be held as treasury stock.
New Oriental Education & Technology Group Inc. (EDU), a leading provider of private educational services in China, recently announced an extension of its share repurchase program, which was initially launched in July 2022. New Oriental's board of directors authorized the extension, allowing for the repurchase of up to approximately US$209 million worth of its ADSs and/or common shares until May 31, 2024. As of May 31, 2023, New Oriental had already repurchased around US$191 million worth of its ADSs under the program. The decision to authorize the stock buyback reflects New Oriental's confidence in its financial strength and future prospects. This move is also aligned with New Oriental's commitment to enhancing shareholder value. The repurchases will be carried out through various methods, including open market transactions, privately negotiated deals, block trades, or other legally permissible means, depending on market conditions and regulatory requirements. New Oriental's board of directors will periodically review the Share Repurchase Program, allowing for potential adjustments in terms and size as needed.
All data was sourced from LevelFields AI
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