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BUYBACK ANNOUNCEMENTS LOOKING TO OUTPACE 2024
While the stock market has had a lot of wobbles so far this year, the latest research from Winston Chua, analyst at ISI Emerging Market Group suggests that corporate America is more enthusiastic than ever, with record share buyback announcements.
According to Chua, buyback announcements rose to more than $700 billion through the first four and a half months of the year with repurchase announcements topping $150 billion in three of the last four months.
This puts the 2025 buyback pace ahead of 2024, which set a record with an annual total of $1.34 trillion, according to the research. However, Chua did note that buybacks do "trail off during the second half of the year."
Buyback announcements in the Q1 earnings season averaged $16.7 billion daily through the first four and a half weeks of earnings season, according to the research which cites the previous record of as $11.3 billion per day - set in the April/May 2024 earnings season.
While more than 40 companies announced buyback authorization for at least $1 billion, Chua notes that the five biggest announcements made up 55% of the total.
For the big five pointed to a $100 billion announcement from Apple AAPL.O, $40 billion from Wells Fargo WFC.N, $30 billion from Visa V.N, $25.1 billion from ASML and $7.1 billion from Progressive PGR.N.
(Sinéad Carew)
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