With summer vacations in full swing, August is typically a quiet month in all markets, including share repurchase announcements. This year was no different with 65 companies announcing authorizations greater than $25M totaling $17BN for an average announcement size of $262M.
The past five Augusts averaged $25BN in volume authorized, with this year’s $17BN being the smallest. While notable, it’s not necessarily alarming; the difference was only $8BN, which could’ve easily been made up by only a handful of companies. While lacking many sizable announcements, this month was above average in overall number of programs announced. The average number of monthly authorizations over the past five years is 54, below August’s 65 plans. August was a summer month filled with smaller authorizations.
2019 buyback authorizations are down -24% YTD compared to this time last year, but 2018 was a record year for share repurchases. We take a closer look at this trend on the second page of our report.
Top August Announcements
| Annc Date | Company Name | Annc. Amt ($MM) | Mkt Cap ($MM) | % of Mkt Cap ($MM) | Mult of 30d ADTV | Industry Sector |
|---|---|---|---|---|---|---|
| 8/8/2019 | Archer-Daniels-Midland | 3,794 | 21,332 | 17.79% | 27.2x | Consumer, Non-cyclical |
| 8/8/2019 | Symantec | 1,100 | 14,169 | 7.76% | 5.6x | Communications |
| 8/7/2019 | Marathon Oil | 1,000 | 9,856 | 10.15% | 6.8x | Energy |
| 8/16/2019 | Raymond James Financial | 750 | 10,517 | 7.13% | 11.3x | Financial |
| 8/22/2019 | Huazhu Group | 750 | 9,536 | 7.87% | 17.9x | Consumer, Cyclical |
| 8/1/2019 | Capri Holdings | 500 | 4,915 | 10.17% | 4.0x | Consumer, Cyclical |
| 8/1/2019 | Select Medical Holdings | 500 | 2,233 | 22.39% | 70.5x | Consumer, Non-cyclical |
| 8/1/2019 | Telephone & Data Systems | 500 | 3,563 | 14.03% | 22.7x | Communications |
| 8/14/2019 | Avnet | 500 | 4,222 | 11.84% | 15.4x | Industrial |
| 8/20/2019 | Amcor PLC | 500 | 16,187 | 3.09% | 9.8x | Industrial |
Data sources: Bloomberg, Guzman & Co.
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