These 3 Companies Recently Unveiled Fresh Buyback Programs

Investing

Published: August 25, 2023 11:56 pm

Last Updated: August 28, 2023 10:58 am

Stock buybacks, also known as share repurchase programs, are commonly implemented by companies to boost shareholder value.

A stock buyback occurs when a company purchases outstanding shares of its stock, essentially re-investing in itself.

There are several reasons companies elect to buy back their stock: companies have decided to utilize excess cash, want to limit dilution caused by employee stock option programs, or simply because they believe their shares are undervalued.

Three companies – NVIDIA NVDA, NVR NVR, and Ameriprise Financial AMP – have all recently unveiled repurchase programs. Let’s take a closer look at each.

NVIDIA

NVIDIA unveiled an additional sizable $25 billion share buyback following its latest blowout quarter, undoubtedly to the likes of investors. The stock is a Zacks Rank #1 (Strong Buy), with earnings estimate revisions hitting the tape across the board.

Regarding the mentioned quarter, the company exceeded the Zacks Consensus EPS Estimate by nearly 30% and posted a 20% revenue beat.

Earnings improved 430% year-over-year, whereas revenue jumped 100% from the same period last year. Data Center revenue, which consists of AI chips, grew a remarkable 140% sequentially and 170% year-over-year, crushing expectations.

NVR

Directors of NVR recently authorized a $500 million share buyback on August 2^nd. Analysts have taken their earnings expectations higher across the board, helping land the stock into a Zacks Rank #2 (Buy).

The company has consistently exceeded quarterly estimates, sporting an average 10% EPS beat across its last four quarters. Just in its latest release, the company beat bottom line expectations by more than 15% but delivered a slight revenue miss.

Ameriprise Financial

Ameriprise Financial authorized an additional $3.5 billion share repurchase program in late July. The stock is currently a Zacks Rank #3 (Hold).

The company’s growth profile is hard to ignore, further reflected by its Style Score of “B” for Growth. AMP’s earnings are forecasted to climb 20% in its current year on 10% higher revenues. Peeking ahead to FY24, expectations allude to a further 12% bump in earnings paired with 7% higher sales.

Bottom Line

A common way that companies boost shareholder value is through implementing share buybacks. In its simplest form, buybacks represent a company essentially re-investing in itself.

In addition, it can provide a nice confidence boost for investors, as the buybacks indicate that the company is utilizing its excess cash and not just hoarding it.

All three stocks above – NVIDIA NVDA, NVR NVR, and Ameriprise Financial AMP – have recently unveiled repurchase programs, attempting to maximize shareholder value.
NVIDIA Corporation (NVDA): Free Stock Analysis Report

Ameriprise Financial, Inc. (AMP): Free Stock Analysis Report

NVR, Inc. (NVR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

This article originally appeared on Zacks

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.