Interesting. Share buybacks appear to have become a bit of a mantra these past few years. An easy way to gain shareholder support under the veneer of being in the universal interest of shareholders. I’ve argued most fall short of making a significant difference in share count as they are not long enough in time (years are needed) or deep enough in terms of percentage of outstanding shares purchased. Most are merely a replacement of shares issued under SBC plans. Some even add insult to injury by doing it with borrowed money.
Interesting. Share buybacks appear to have become a bit of a mantra these past few years. An easy way to gain shareholder support under the veneer of being in the universal interest of shareholders. I’ve argued most fall short of making a significant difference in share count as they are not long enough in time (years are needed) or deep enough in terms of percentage of outstanding shares purchased. Most are merely a replacement of shares issued under SBC plans. Some even add insult to injury by doing it with borrowed money.
More on buybacks from a recent Morgan Stanley research pointing to a problem with buybacks in companies that concurrently award large employee compensation in stock. https://marketwatch.cmail19.com/t/j-e-gjkiiid-iuydtklujr-r/