Mastercard (MA) swiped their card on a $8BN share repurchase authorization in December, the largest announcement of the month. This plan is on top of the ~$200M remaining under their $6.5BN authorization from December 2018. Mastercard has been steadily increasing their buyback Y/Y from $3.5BN in 2016 up to $6.3BN in 2019. MA also increased their cash dividend 21%.
Another company steadily increasing their buyback has been Biogen (BIIB). They announced their second $5BN authorization of the year in December, following an announcement of the same size in March. BIIB was repurchasing $1BN in 2016, increasing up to $5BN+ in 2019.
Cerner utilized free cash flow in 2019 to return $1.3BN of capital to shareholders via buybacks vs $116M in dividends. They look to continue this trend with a $1.5BN new authorization in December. Other large plans came from Cummins and Prudential Financial with $2BN each.
We reviewed over 130K company transcripts and presentations for share repurchase activity: the results plus a review of 2019 authorizations in the full report.
December Top Announcements
| Annc Date | Company Name | Annc. Amt ($MM) | Mkt Cap ($MM) | % of Mkt Cap ($MM) | Mult of 30d ADTV | Industry Sector |
|---|---|---|---|---|---|---|
| 12/3/2019 | Mastercard Inc | 8,000 | 289,635 | 2.8% | 9.5x | Financial |
| 12/19/19 | Biogen Inc | 5,000 | 53,696 | 9.3% | 10.5x | Consumer, Non-cyclical |
| 12/10/19 | Cummins Inc | 2,000 | 27,523 | 7.3% | 11.2x | Consumer, Cyclical |
| 12/19/2019 | Prudential Financial Inc | 2,000 | 38,126 | 5.2% | 11.4x | Financial |
| 12/13/2019 | Cerner Corp | 1,500 | 22,687 | 6.6% | 13.0x | Technology |
| 12/2/2019 | Newmont Corp | 1,000 | 31,761 | 3.1% | 3.6x | Basic Materials |
| 12/3/2019 | Dollar General Corp | 1,000 | 39,331 | 2.5% | 2.7x | Consumer, Cyclical |
| 12/18/2019 | Devon Energy Corp | 1,000 | 9,487 | 10.5% | 6.9x | Energy |
Data sources: Bloomberg, Guzman & Co.
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