This October was light on buyback trick-or-treats as U.S. companies authorized $38BN of new repurchases.
On the back of strong earnings, Intel (INTC) announced a plan for $20BN, an increase from the $15BN plan announced in Q4’18. Intel has been increasing the amount of repurchases executed for the past three consecutive quarters.
Behind Intel, both Phillips 66 (PSX) and Abbott Labs (ABT) declared sizeable plans, each authorizing an additional $3BN. Phillips has been authorizing ~$3BN per year and $15BN cumulatively since they initiated their program in 2012. With the authorization, Phillips stated their long term goal to return 40% of operating cash flow to shareholders via buybacks and dividends. The ABT announcement could be a signaling of a more aggressive repurchase effort as they’ve executed minimal buybacks in recent years, and last announced a $3BN plan in 2014 (of which ~$800M still remains).
Overall market volume was below the $50BN average for the last five Octobers, however, 2019 YTD authorizations have already surpassed 2017 and 2016 numbers, signaling the likely second highest year behind 2018.
Top October Announcements
| Annc Date | Company Name | Annc. Amt ($MM) | Mkt Cap ($MM) | % of Mkt Cap ($MM) | Mult of 30d ADTV | Industry Sector |
|---|---|---|---|---|---|---|
| 10/25/2019 | Intel | 20,000 | 245,601 | 8.14% | 18.9x | Technology |
| 10/4/2019 | Phillips 66 | 3,000 | 45,240 | 6.63% | 11.9x | Energy |
| 10/11/2019 | Abbott Laboratories | 3,000 | 140,738 | 2.13% | 7.6x | Consumer, Non-cyclical |
| 10/8/2019 | AutoZone | 1,250 | 25,743 | 4.86% | 6.6x | Consumer, Cyclical |
| 10/23/2019 | Navient | 1,000 | 2,976 | 33.60% | 41.1x | Financial |
| 10/23/2019 | Xilinx | 1,000 | 23,523 | 4.25% | 2.9x | Technology |
| 10/24/2019 | Juniper Networks | 1,000 | 8,476 | 11.80% | 12.0x | Communications |
| 10/29/2019 | Cintas | 1,000 | 28,413 | 3.52% | 8.1x | Consumer, Non-cyclical |
| 10/31/2019 | Qorvo | 1,000 | 9,524 | 10.50% | 7.1x | Technology |
Data sources: Bloomberg, Guzman & Co.
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