Investing

Buybacks Keep Coming on Strong (ANN, DDS, GPS, HPQ, LO, MRVL, JWN, RSH, RMBS)

Earlier this year was the trend of hiking dividends, but now that so many companies have raised their quarterly payouts we are seeing the ‘other’ shareholder-friendly action taking place.  Buybacks are still coming strong.  We have seen new buybacks and solid buyback updates this week from the likes of Ann Taylor Stores Corporation (NYSE: ANN), Dillard’s Inc. (NYSE: DDS), Gap Inc. (NYSE: GPS), Hewlett-Packard Co. (NYSE: HPQ), Lorillard, Inc. (NYSE: LO), Marvell Technology Group Ltd. (NASDAQ: MRVL), Nordstrom Inc. (NYSE: JWN), RadioShack Corporation (NYSE: RSH), and Rambus Inc. (NASDAQ: RMBS).  We have outlined and updated each below with some added color on size.

Ann Taylor Stores Corporation (NYSE: ANN) this morning announced with earnings that it has voted to expand the existing share repurchase authorization to $400 million, which the company said results in nearly $260 million currently available under the authorization to repurchase shares.  Its market cap is only $909 million.

Dillard’s Inc. (NYSE: DDS) authorized the repurchase of up to $250 million of its Class A shares in the open market or through privately negotiated transactions.  During the second quarter of 2010, Dillard’s completed all share repurchases under its previous 2007 buyback plan of $200 million. The market cap is $1.44 billion.

Gap Inc. (NYSE: GPS) announced with earnings that it had authorized a new $750 million share repurchase program after ending the quarter with $150 million remaining under the $1 billion share repurchase program authorized in February this year.

Hewlett-Packard Co. (NYSE: HPQ) said last night with earnings that it spent some $2.6 billion in cash to repurchase approximately 55 million shares of common stock in the open market.

Lorillard, Inc. (NYSE: LO) just hiked its dividend to $1.125 from $1.00, but it approved a $1 billion shares buyback plan. Not bad for an $11.4 billion market cap.

Marvell Technology Group Ltd. (NASDAQ: MRVL) announced last night with earnings that its board had authorized a program to repurchase up to $500 million of its outstanding common shares.  It is subject to factors, but this compares to a market cap of $9.6 billion.

Nordstrom Inc. (NYSE: JWN) approved a $500 million stock buyback on Thursday, which came after earlier earnings.  This compares to a $6.8 billion market cap.

RadioShack Corporation (NYSE: RSH) raised the amount under its authorization for share buybacks from $290 million up to $500 million. This sounds great with a $2.4 billion market cap except this means that there are no interested buyers.

Rambus Inc. (NASDAQ: RMBS) last night even set a $90 million accelerated share buyback plan that is effectively being prepaid through JPMorgan.  The company already had an authorization to buy up to 10 million shares of common stocks. Its market cap is $2.1 billion.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.