Latest news with #stockbuybacks
Globe and Mail
17 hours ago
- Business
- Globe and Mail
These 3 Stocks Are Buying Back Billions in Shares
As market volatility and sector rotations persist in 2025, companies sitting on strong balance sheets are leaning into one of the most shareholder-friendly strategies available: stock buybacks. A wave of fresh repurchase authorizations has hit the tape in recent weeks, signaling confidence from management teams about the future of their businesses and the current undervaluation of their stocks. These announcements are especially notable in the current environment, where selective value and capital return are once again top priorities for investors. Multiple large-cap stocks just announced significant buyback programs. Among them is one of the hottest consumer discretionary names over the past few years. It now has buyback capacity equal to nearly 16% of its market cap, and its shares are down massively from highs. This suggests the company is highly confident in the ability of its shares to perform well going forward. LII: Strong Mid-Term Industrials Performer Boosting Buybacks and Dividends [content-module:CompanyOverview|NYSE:LII] First up is Lennox International (NYSE: LII), an approximately $20 billion player in the heating, ventilation, air conditioning, and refrigeration space. On May 22, the company announced an increase to its buyback capacity of $1 billion, bringing its total capacity to just under $1.3 billion. As of the May 30 close, this is equal to about 6.4% of the company's market capitalization. In addition, the company announced a very notable 13% increase to its quarterly dividend. The next $1.30 per share dividend will be payable on July 15 to shareholders of record on June 30. This gives the stock an indicated dividend yield of 0.9%. Despite achieving relatively moderate sales growth over the last couple of years, Lennox has been a standout performer. Since the end of 2022, the stock has provided a total return of nearly 142% as of the May 30 close. The company's operating margin expanded significantly from around 14% in 2022 to nearly 19.5% in 2024. Its full-year adjusted earnings per share (EPS) grew by 54% over this period, supporting the rise in shares. DECK: Ups Repurchase Capacity After Quarter of Record Buybacks [content-module:CompanyOverview|NYSE:DECK] Next up is one of the most talked-about consumer discretionary stocks over the past several years, Deckers Outdoor (NYSE: DECK). From the beginning of 2022 to Jan. 30, 2025, the stock gained approximately 265%. However, since then, the trajectory of the Hoka shoemaker's stock has pointed straight down. From that all-time high in January, the stock is down approximately 53% as of the May 30 close. The company's recent share repurchase authorization announcement indicates that it may be looking to take advantage of this huge fall from grace. On May 22, along with its fiscal Q4 2025 results, Deckers announced it had increased its buyback authorization to approximately $2.5 billion. This equates to an absolutely massive 15.8% of the company's market capitalization as of the May 30 close. This gives the company a huge ability to decrease its outstanding share count and provide a large tailwind to its EPS. The company already stepped up its buybacks in a big way in calendar Q1 as the huge drop in shares began to manifest. The company spent $266 million on repurchases, by far the highest amount in a single quarter in its history. In Q4, when shares were nearing their peak, the company spent just $50 million on buybacks. This buyback authorization suggests the firm may be looking to step up repurchases even further. Decker's cash balance of just under $1.9 billion, while only having $277 million in debt, gives it a very strong ability to do so. Adding to this ability is the fact that the company is relatively frugal when it comes to capital expenditures, spending an average of just $22 million over the last four quarters. TS: Robust Balance Sheet, 5% Dividend, Substantial Buyback Capacity [content-module:CompanyOverview|NYSE:TS] Last up is Tenaris (NYSE: TS). The large-cap steel pipe supplier for oil and gas companies recently approved a substantial new share repurchase program, valued at $1.2 billion. As of the May 30 close, this number is equal to approximately 6.7% of the company's market capitalization. Tenaris also has a very strong dividend yield of just under 5%. Tenaris first started buying back shares at the beginning of 2024. The company has been making notable use of buybacks since, spending an average of $315 million on repurchases per quarter. This buyback pace suggests it could use its full capacity over the next 12 months. Tenaris remains in a very strong position to continue this buyback pace if it chooses. It ended last quarter with a net cash balance of $4 billion and generated free cash flow of over $2.1 billion in the last 12 months. Thus, if operating results remain similar going forward, the company could execute its full buyback capacity without reducing its cash reserves. Overall, these three firms are reiterating their commitment to returning capital to shareholders through their new buyback authorization. Deckers stands out due to the dramatic fall in its share price and its gigantic buyback authorization. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...
Yahoo
09-05-2025
- Business
- Yahoo
Timing your investments with the '15:50 trade'
As corporate stock buybacks are on pace to ascend to a record high in 2025, it's time to start thinking how best to invest in the final minutes of the trading session with pinpoint accuracy. That's where the "15:50" trade comes in. Simpler Trading Senior Managing Director Chris Brecher explains the trading action that occurs from companies at 3:50 P.M., before the market close, and where it fits into the options trading landscape. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Amid ongoing volatility, timing the market may be alluring, but it's not easy. Our next guest lays out an option strategy that uses timing to its advantage. Chris Butcher, Simple simpler trading, Senior Managing Director joining us now to discuss in the options playbook, sponsored by Tasty Trade. So, Chris, walk us through what you're thinking here on this trade because it takes advantage of some of the changing dynamics in market structure. Yeah, is uh, we've been using, we call it the 1550 trade because uh, companies can't buy back stock the last 10 minutes. So that's an SEC rule 10b-18. And the way we look at it is of like financial times just had an article about companies are going to go on a $500 billion buyback spree. And they can't. Usually companies in the S&P don't buy back stock five weeks prior to earnings. But for the first of the opening print and the last 10 minutes, they can't ever buy back stock. So a lot of times five weeks prior to earnings when you go in the blackout, the preponderance of stocks, I usually started with JP Morgan, which is usually was this time about April 14th. So you go into early, you know, late March, it means to us, not that the market's going to automatically go down because that's what a lot of people think with this kind of thing. Just means bad news and bad charts are more likely to work. And that's what we saw. I mean, you saw what happened. And once the preponderance of S&P stocks could buy back stock, the markets have held up great. So the whole point is, even if they have some lousy news, they're Teflon because they can buy back stock. But you can see the end of the day, almost every single day, uh, there's been great opportunities about shorting the markets the last 10 minutes. So we did like 15 minutes before. Uh, Chris, a different question for you now. You know, VIX still above 20 here, Chris. I'm just curious, what do you think it gets gets it back down to sort of pre-tariff levels? Call it low mid-teens. Yeah, that's a good question. Um, I think it stayed up because the realized volatility stayed up so much. So we like doing the 16 rule. So if you divide the VIX by 16, that's what market makers are expecting, like over a 1% move, uh, every day. And we've seen like a 1% move every day. If I'm right, uh, we've been showing a chart from a old stock market pro, uh, Justin Mamis of the sentiment cycle in markets on selloffs. And it's been adhering perfectly to it, where you get, uh, basically you get the the rally, you get the selloff and the consolidation, then you get the second leg, that's a panic sell off like you saw in April 2nd, you get the short squeezes, and then you get for weeks that futzes around, where you get a very tight range. And I think that tight range will be their realized volatility going down, and I think you'll get the uh, the VIX back to like 17. So I think when you get the expected move of the realized move every day of 1%, like today, I mean, if it stayed like this for two weeks, I think you'd see the VIX at 16 or 17. And so, and then that what levels are you watching for in the S&P 500 that would sort of go along with that? Um, right now, well, I'll tell you, I look at it, we we did a Google search, Yahoo search, either either. And of uh, yeah, I got to be careful there. But uh, when they basically threatened the tariffs with China of 10 to 20%, that was March 4th. So the first thing we're thinking is number one, the S&P on a daily chart, the 200 moving average is around 5,800. The March 4th statement was right around 5,800, and a lot of prior tops have been 5,800, and believe it or not, the prior bottom before the election, let me go to it and be sure I'm telling you the right thing, but I believe was, survey says, yeah, 5,800, the same thing. So that 5,800 is, I think, about it on the upside, because I don't understand if you say, well, China, uh, lowers tax, uh, the tariffs are going to go to 50, uh, 50%, that's still higher than March 4th. So it just seems there's so many reasons for the market to futz around in this area for weeks. And I think it's going to take a gradual uptrend, a tightening volatility to work off any kind of oversold MACD, because we look at oscillators of a weekly oscillator, but I think it that it'll take that to work off all the bearish sentiment. And you've seen it slowly get worked off, but it's taken a long time this time. Chris, just got a more general question for you. I'm just curious whether, you know, sort of the notable shifts you've seen, Chris, in tone, character, volumes, and options trading, give given all all the volatility we've been seeing. Um, well, we've seen a lot of the zero DTE, uh, stuff, which to me is more premium selling opportunities, but you can't premium sell the calls because you get these, we call, uh, so many people call them tape bombs, positive news out of nowhere, even when the markets look bad. So we've been doing a lot more limited risk like call flies or put flies. So our risk is limited, but if we're right that the expected move during the day starts to contract, we just try to take some money that way. We did that today, and we've done it most days. But I'm seeing a lot more gambler mentality with the zero DTEs, and overall, premium selling is the way I like doing it. So, but at the end of the day, yeah, we'll buy we'll buy cheap premium. That will do because of this lack of buybacks. Chris, always great to see you and have you on the show. Have a great weekend. Hey, you too. Thanks for having me on. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
