Top 10 Firms Repurchasing Their Own Stock

BENGALURU: Share buybacks are one of the ideal yet doubtful financial methods used by companies to return its wealth to its shareholders. This year, the U.S.’s largest companies are buying back stocks in bulk at a record pace. Here is the list of top 10 companies buying back their stocks in the first quarter, as compiled by CheatSheet.

In general, buybacks are carried in two ways; one is open market and the other, tender offer. Whereas, the tricky buybacks in actual mean a company investing in itself or using its cash to buy its own shares.

The truth is that a company can’t act as its shareholder, whereas the share buybacks are absorbed by the company. In result, this will attract short-term investor and analysts to increase their stakes as there are fewer shares in the company.

According to preliminary results from S&P Dow Jones Indices an overall 299 companies reduced their share count in the first three months of this year, down from 308 in the fourth quarter but up from 290 from the first quarter of 2014. 500 buybacks totaled $144.2 billion in the first quarter of 2015. The all-time quarterly high for buybacks is $172 billion, which occurred in the third quarter of 2007.

Information technology sector still is dominating buybacks which was 24.3 percent in first quarter, financials at 15.6 percent and healthcare at 14.5 percent.
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