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Stock buybacks, or share repurchase programs, are commonly executed by companies to boost shareholder value.
A stock buyback occurs when a company purchases outstanding shares of its stock. In its simplest form, buybacks represent companies essentially re-investing in themselves.
In 2024, several companies – HCA Healthcare (HCA - Free Report) , Meta Platforms (META - Free Report) , and eBay (EBAY - Free Report) – have unveiled repurchase programs. In addition to buybacks, all three sport a favorable Zacks Rank, reflecting positive earnings estimate revisions among analysts. Let’s take a closer look at each.
HCA Healthcare
HCA Healthcare, a Zacks Rank #1 (Strong Buy), is the largest non-governmental operator of acute care hospitals in the U.S. The company authorized an additional $3 billion share repurchase program following its latest quarterly print.
Analysts have raised their earnings expectations across the board.
Image Source: Zacks Investment Research
The company’s outlook was boosted following better-than-expected quarterly results. HCA posted a 16.8% beat relative to the Zacks Consensus EPS estimate and reported sales 4.5% ahead of expectations, reflecting year-over-year growth rates of 27% and 12%, respectively.
HCA’s growth has remained strong as of late, with revenue seeing a recent acceleration.
Image Source: Zacks Investment Research
Meta Platforms
Holding a spot in the elite Magnificent 7 group, Meta shares have been remarkably strong performers over the last year, up 150%.
Meta authorized an additional $50 billion in share buybacks and unveiled its first-ever dividend following its latest set of quarterly results, helping to explain the strong reaction post-earnings. The stock is currently a Zacks Rank #1 (Strong Buy), with earnings expectations jumping higher across the board.
Image Source: Zacks Investment Research
It’s worth mentioning that the company’s advertising revenue has positively surprised in six consecutive quarters, with the most recent beat totaling 2.2% (or $827 million). Advertising represents the bulk of the company’s revenue, making up 96.5% of overall sales in Q4.
Image Source: Zacks Investment Research
eBay
eBay unveiled an additional $2 billion share buyback following its latest set of quarterly results. Concerning headline figures, the company exceeded the Zacks Consensus EPS estimate by 4% and reported sales 2.3% ahead of expectations.
Shares popped following the release, reflecting investors’ bullish stance. Positive earnings estimate revisions soon followed, landing the stock into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
The company’s shareholder-friendly nature shouldn’t be overlooked, reflected by its 15.3% five-year annualized dividend growth rate. Shares currently yield 2.1% annually paired with a sustainable payout ratio sitting at 32% of the company’s earnings.
Image Source: Zacks Investment Research
Bottom Line
A common way that companies amplify shareholder value is through implementing share buybacks. They can provide a nice confidence boost for investors, indicating that the company is utilizing excess cash and can help put in a floor for shares.
And recently, all companies above – HCA Healthcare (HCA - Free Report) , Meta Platforms (META - Free Report) , and eBay (EBAY - Free Report) – unveiled additional or fresh buyback programs.
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Buyback Bonanza: 3 Companies Scooping Up Shares
Stock buybacks, or share repurchase programs, are commonly executed by companies to boost shareholder value.
A stock buyback occurs when a company purchases outstanding shares of its stock. In its simplest form, buybacks represent companies essentially re-investing in themselves.
In 2024, several companies – HCA Healthcare (HCA - Free Report) , Meta Platforms (META - Free Report) , and eBay (EBAY - Free Report) – have unveiled repurchase programs. In addition to buybacks, all three sport a favorable Zacks Rank, reflecting positive earnings estimate revisions among analysts. Let’s take a closer look at each.
HCA Healthcare
HCA Healthcare, a Zacks Rank #1 (Strong Buy), is the largest non-governmental operator of acute care hospitals in the U.S. The company authorized an additional $3 billion share repurchase program following its latest quarterly print.
Analysts have raised their earnings expectations across the board.
Image Source: Zacks Investment Research
The company’s outlook was boosted following better-than-expected quarterly results. HCA posted a 16.8% beat relative to the Zacks Consensus EPS estimate and reported sales 4.5% ahead of expectations, reflecting year-over-year growth rates of 27% and 12%, respectively.
HCA’s growth has remained strong as of late, with revenue seeing a recent acceleration.
Image Source: Zacks Investment Research
Meta Platforms
Holding a spot in the elite Magnificent 7 group, Meta shares have been remarkably strong performers over the last year, up 150%.
Meta authorized an additional $50 billion in share buybacks and unveiled its first-ever dividend following its latest set of quarterly results, helping to explain the strong reaction post-earnings. The stock is currently a Zacks Rank #1 (Strong Buy), with earnings expectations jumping higher across the board.
Image Source: Zacks Investment Research
It’s worth mentioning that the company’s advertising revenue has positively surprised in six consecutive quarters, with the most recent beat totaling 2.2% (or $827 million). Advertising represents the bulk of the company’s revenue, making up 96.5% of overall sales in Q4.
Image Source: Zacks Investment Research
eBay
eBay unveiled an additional $2 billion share buyback following its latest set of quarterly results. Concerning headline figures, the company exceeded the Zacks Consensus EPS estimate by 4% and reported sales 2.3% ahead of expectations.
Shares popped following the release, reflecting investors’ bullish stance. Positive earnings estimate revisions soon followed, landing the stock into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
The company’s shareholder-friendly nature shouldn’t be overlooked, reflected by its 15.3% five-year annualized dividend growth rate. Shares currently yield 2.1% annually paired with a sustainable payout ratio sitting at 32% of the company’s earnings.
Image Source: Zacks Investment Research
Bottom Line
A common way that companies amplify shareholder value is through implementing share buybacks. They can provide a nice confidence boost for investors, indicating that the company is utilizing excess cash and can help put in a floor for shares.
And recently, all companies above – HCA Healthcare (HCA - Free Report) , Meta Platforms (META - Free Report) , and eBay (EBAY - Free Report) – unveiled additional or fresh buyback programs.