The top 20 biggest buyers account for 53% of S&P 500 share repurchase volume.
The buyback market is notoriously top heavy, with 5 companies responsible for over 28% of volume.
The top heavy theme was exasperated in 2020 but has since moderated to recent historical averages. The top 20 biggest buyers account for 53% of S&P 500 share repurchase volume (reported Q1’21).
In Q1’21, the largest buyer (AAPL) accounted for over 11% of all volume in the S&P 500.
AAPL, GOOGL, MSFT and FB consisted of ~25% of all volume.
In recent quarters Tech and Telecom sectors had dominated volume. That trend is beginning to moderate as Financials return to the market.
The number of companies decreasing share count (the outcome of buybacks) did fall in 2020 as many companies’ programs remained on pause, but has since rebounded.
Data sources: S&P Dow Jones Indices, Guzman & Co.
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