$140BN of buyback volume was authorized in June from 38 repurchasers announcing plans greater than $25M. This was the busiest month by volume since the record $196BN in June of 2018.
“You can take these buybacks to the bank.” The two most notable events in June were the Summer solstice and U.S. financial institutions announcing their respective buyback plans following the passing of their Fed stress tests.
$140BN of buyback volume was authorized in June from 38 repurchasers announcing plans greater than $25M. This was the busiest month by volume since the record $196BN in June of 2018.
Nearly 96% of all volume authorized came from the financial sector including nine of 10 largest plans. Top announcements came from BofA ($30.9BN), JPMorgan ($29.4BN) and Wells Fargo ($23.1BN).
There were only three announcements greater than $1BN outside of the financial sector. In addition to Cheniere Energy’s $1BN plan, two of the three DowDupont spin-offs, Dupont and Corteva, announced authorizations of $2BN and $1BN, respectively.
Top June Announcements
| Annc Date | Company Name | Annc. Amt ($MM) | Mkt Cap ($MM) | % of Mkt Cap ($MM) | Mult of 30d ADTV | Industry Sector |
|---|---|---|---|---|---|---|
| 6/27/2019 | Bank of America | 30,900 | 279,731 | 11.05% | 23.5x | Financial |
| 6/27/2019 | JPMorgan Chase | 29,400 | 368,775 | 7.97% | 22.6x | Financial |
| 6/27/2019 | Wells Fargo | 23,100 | 214,335 | 10.78% | 27.7x | Financial |
| 6/27/2019 | Citigroup | 17,100 | 163,584 | 10.45% | 19.0x | Financial |
| 6/27/2019 | Goldman Sachs | 7,000 | 78,698 | 8.89% | 15.6x | Financial |
| 6/27/2019 | PNC Financial Services | 4,300 | 63,111 | 6.81% | 18.4x | Financial |
| 6/27/2019 | Bank of New York Mellon | 3,940 | 42,581 | 9.25% | 16.7x | Financial |
| 6/27/2019 | US Bancorp | 3,000 | 84,395 | 3.55% | 11.6x | Financial |
| 6/27/2019 | Capital One Financial | 2,200 | 43,222 | 5.09% | 13.7x | Financial |
| 6/3/2019 | DuPont de Nemours | 2,000 | 56,983 | 3.51% | 5.5x | Basic Materials |
| 6/27/2019 | State Street | 2,000 | 21,155 | 9.45% | 9.0x | Financial |
| Mean | $11,358 | $128,779 | 8% | 16.7x | ||
| Median | $4,300 | $78,698 | 9% | 16.7x |
Data sources: Bloomberg, Guzman & Co.
Related Content
Monthly Market Update: September 2020
Buybacks in Recessionary Periods
Monthly Market Update: February 2020
Related Content
Monthly Market Update: September 2020
Buybacks in Recessionary Periods
Monthly Market Update: February 2020
Monthly Market Update: January 2020
Disclaimer
The Information presented is for information purposes only and may not be communicated, reproduced, or distributed without Guzman & Company’s (“Guzman”) express authorization. This communication has been prepared by sales, trading, or other non-research personnel of Guzman. The information presented has been compiled from publicly available information and sources that Guzman believes to be reliable, but Guzman does not represent or warrant that the information is accurate or complete and undertake no obligation to update the information presented. This is not a Research Report and the information presented is insufficient to form an investment opinion. Guzman makes no express warranties with respect to any information included in this communication, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use. Without limiting any of the foregoing and to the extent permitted by law, Guzman accepts no liability whatsoever for any consequential losses arising from the use or reliance on the information contained herein. Guzman & Company is a registered broker dealer in Coral Gables, FL, Member FINRA, SIPC.