Five Large Stock Buyback Announcements This Week
One of the advantages of following eight different strategies/verticals on InsideArbitrage is that when the idea flow from one area slows down, such as insider buying during earnings-related quiet periods, it picks up in a different strategy.
As I reviewed stock buyback announcements this week, here are five that stood out to me:
1. The Hartford Insurance Group (HIG) with a massive $4.2 billion new stock buyback authorization, representing nearly 11% of the market cap at announcement.
They have retired 16% of their shares outstanding over the last four years. Scores 86 on our IA Score quantitative model (anything over 70 makes us pay attention).
2. The hospital operator Tenet Healthcare (THC) coming in with a $2 billion increase in their buyback authorization, representing nearly 12% of the market cap at announcement.
They have retired 22% of their shares outstanding over the last four years. Scores 85 on our IA Score quantitative model.
3. The Puerto Rico-based bank and financial services company Popular (BPOP) announcing a $1 billion new buyback authorization, representing nearly 9% of the market cap at announcement.
They have retired over 17% of their shares outstanding over the last four years. Scores 79 on our IA Score quantitative model.
The company is also going through two key management changes with the appointment of a new CEO and CFO. Both were internal promotions. The CFO, Jorge Garcia, was promoted to the role of CEO and the Chief Risk Officer, Lidio Soriano, took on the role of CFO.
4. The construction materials company Armstrong World Industries (AWI) adding to their existing buyback authorization to the tune of $800 million, representing over 12% of the market cap at announcement.
They have retired over 8% of their shares outstanding over the last four years. At 47, this scores the lowest among this group on our IA Score quantitative model.
5. The specialty chemicals and construction products company RPM International (RPM) announcing a $700 million increase in their existing repurchase program, representing over 5% of the market cap at announcement.
They have retired a little over 1% of their shares outstanding over the last four years. Scores 68 on our IA Score quantitative model.
Most of these were covered in more detail on our InsideArbitrage twitter account during the week as these announcements came in.
Brad Jacobs and QXO probably already have AWI and RPM on their radar.
Disclaimer: Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.