Keep in mind Lowe's has invested over 35 billion in stock buyback. Sounds like a elevated stock price to me. When a company has to invest that much money to buy they're stock back there is a red flag somewhere.
Exactly! The stock price did not get where it is because of the company's "success" but because it was bumped up through stock buyback. That's like buying thousands of copies of your own book and then boasting how well it sold. It's pathetic.
Yes they were, but you must have cash to buy back your own stock and the SEC reversed its course.
Stock Buybacks used to be illegal, Seen as a method to manipulate stock value.
@1cjo+1b4s4sqt--- @avr+1b4s4sqt---> exactly
They used federal stimulus money to buyback the stock.
Shareholder/former employee here. Stock buybacks increase shareholder value and mean that the company is confident in its business model going forward. Unfortunately’ the phrase ‘stock buybacks’ has become one of the new boogeymen of a certain political ideology in this country and successfully so because so many people are simply not informed about the subject. You should be more worried when a company is NOT buying back its own stock.
Umm... not exactly .....
Organizations are likely to say that a buyback is the best use of capital at that particular time. After all, the goal of a firm's management is to maximize return for shareholders, and a buyback typically increases shareholder value. The prototypical line in a buyback press release is "we don't see any better investment than in ourselves." Although this can sometimes be the case, this statement is not always true. Key words are USE OF ITS CAPTIOL - meaning it used it own cash to do this, thus an organization is in strong position to buy back stock. Also search ROA for further information.