Tis the season for the consumer sectors to announce share repurchase authorizations.
Rudolph the Red Nose Buyback was Automatic Data Processing (ADP) leading the way in November with a $5BN announcement along with Target’s $5BN plan. Other notable announcements we found under the Christmas tree were from Thermo Fisher ($2.5BN), Yum! ($2BN) and Kroger ($1BN).
61 companies announced repurchase authorizations greater than $25M totaling $41.5BN in volumes. Approximately half of all authorizations came from the consumer sectors. As the buyback market is very top heavy, driven by Tech and Financials, the absence of any large ($10BN+) announcement kept volume numbers low in November. However, the breadth of announcements was 10% wider than the average monthly 55 announcements.
In our full report we review the recently reported Q3 share repurchase expenditures in the S&P 500.
November Top Announcements
| Annc Date | Company Name | Annc. Amt ($MM) | Mkt Cap ($MM) | % of Mkt Cap ($MM) | Mult of 30d ADTV | Industry Sector |
|---|---|---|---|---|---|---|
| 11/12/2019 | Automatic Data Processing | 5,000 | 71,984 | 6.95% | 15.6x | Consumer, Non-cyclical |
| 11/20/2019 | Target | 5,000 | 64,059 | 7.81% | 7.0x | Consumer, Cyclical |
| 11/21/2019 | Marsh & McLennan | 2,500 | 54,060 | 4.62% | 14.9x | Financial |
| 11/8/2019 | Thermo Fisher Scientific | 2,500 | 118,152 | 2.12% | 7.2x | Consumer, Non-cyclical |
| 11/12/2019 | US Bancorp | 2,500 | 91,338 | 2.74% | 8.0x | Financial |
| 11/6/2019 | Fox | 2,000 | 20,338 | 9.83% | 14.6x | Communications |
| 11/13/2019 | Kansas City Southern | 2,000 | 15,287 | 13.08% | 13.9x | Industrial |
| 11/19/2019 | NXP Semiconductors NV | 2,000 | 31,869 | 6.28% | 6.0x | Technology |
| 11/21/2019 | Yum! Brands | 2,000 | 29,611 | 6.75% | 7.9x | Consumer, Cyclical |
| 11/21/2019 | Chubb Ltd | 1,500 | 67,967 | 2.21% | 6.6x | Financial |
| 11/6/2019 | FleetCor Technologies | 1,000 | 25,457 | 3.93% | 7.4x | Consumer, Non-cyclical |
| 11/11/2019 | Fortinet | 1,000 | 16,411 | 6.09% | 6.7x | Technology |
| 11/18/2019 | HollyFrontier | 1,000 | 8,701 | 11.49% | 10.7x | Energy |
| 11/5/2019 | Huntington Ingalls Industries | 1,000 | 9,513 | 10.51% | 13.9x | Industrial |
| 11/5/2019 | Kroger | 1,000 | 22,309 | 4.48% | 4.6x | Consumer, Non-cyclical |
| 11/1/2019 | Regeneron Pharmaceuticals | 1,000 | 34,101 | 2.93% | 3.7x | Consumer, Non-cyclical |
Data sources: Bloomberg, Guzman & Co.
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