Corporate Clients’ 4-Week Average Buybacks vs. S&P 500 Total Quarterly Buybacks BofA’s corporate clients are significantly increasing stock buybacks, defying recession fears and indicating a positive market outlook, suggesting these companies expect ongoing growth and stability in the future. Image: BofA Securities
Buybacks – S&P 500 Companies in Blackout Period Once the blackout period for stock buybacks ends, many U.S. companies are likely to resume buyback activities, which could substantially influence both stock performance and market dynamics. Image: Deutsche Bank Asset Allocation
Corporate Client Buybacks as a % of S&P 500 Market Capitalization BofA’s corporate clients are currently engaging in significant stock buyback activities, marking an all-time high. This trend is generally perceived as a positive indicator for the broader market. Image: BofA Securities
S&P 500 Sectors Announced Buybacks (Last 3 Months) In the U.S. stock market, announced buybacks have been significantly driven by the Information Technology and Financial sectors over the last three months. Image: Deutsche Bank Asset Allocation
Buybacks – S&P 500 Cash as % of Total Asset As S&P 500 companies’ cash reserves decline, Bank of America expects buybacks to peak soon. Image: BofA US Equity & Quant Strategy
S&P 500 Annual Buybacks Goldman Sachs predicts a substantial rise in S&P 500 share buybacks throughout 2024 and 2025. This growth is expected to be fueled by continued strong earnings from technology companies and improved financial conditions. Image: Goldman Sachs Global Investment Research
S&P 500 Use of Cash and Buybacks Buybacks and dividends are expected to comprise 43% of cash use in 2024, while Capex and R&D will make up 46% of total cash spending. Image: Goldman Sachs Global Investment Research
S&P 500 Share Buybacks $7.6 trillion of S&P 500 share buybacks over the last 10 years. While buybacks can benefit shareholders, critics argue that funds could have been better spent on research, development, and employee wages. Image: Goldman Sachs Global Investment Research
S&P 500 Weekly Announced Buybacks U.S. share buyback announcements are robust during this earnings season, reflecting companies’ confidence in their financial positions and their dedication to delivering value to shareholders. Image: Deutsche Bank Asset Allocation
S&P 500 EPS Growth vs. Buyback Growth While EPS growth may be one factor influencing a company’s decision to repurchase its own shares, it is just one of many potential drivers of buyback activity. Image: Goldman Sachs Global Investment Research
Buybacks and S&P 500 Use of Cash Stock buybacks are just one potential use of cash by S&P 500 companies. Companies may choose to engage in buybacks to return cash to shareholders, and potentially enhance shareholder value. Image: Goldman Sachs Global Investment Research