A company may choose to buy back outstanding shares for a number of reasons. Repurchasing outstanding shares can help a business reduce its cost of capital, benefit from temporary undervaluation of the stock, consolidate ownership, inflate important financial metrics or free up profits to pay executive bonuses.
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Stock buy back has positive impact on share price and if you have some form of T shares in your long term incentives acct, payroll deferral act and 401K this can be a big plus for retirement savings
LOL...…….Almost fell off my chair laughing at this one...……."They should start with bigger bonuses for Executives , they deserve it. :-)"
- esi
So the por innocent c-suite kids won’t take a dime and benefit from this “cheapo money” that the federal reserve is throwing again for the big corps take advantage? Hummm... you should be randy or another innocent one 😇
If the buybacks happen, it will happen for one reason ─ because the Federal Reserve has artificially lowered interest rates enough so that there is no penalty for carrying debt. AT&T has a huge amount of debt.
Apple is ramping up debt despite sitting on $200B, because the current interest rate environment results in them getting something for nothing (moral hazard).
https://www.usatoday.com/story/money/markets/2016/02/16/apple-worlds-richest-company-borrows-again/80451180/
The demand for borrowing is so great that the Federal Reserve has returned to money printing (quantitative easing) to meet the demand.
https://www.nytimes.com/2019/10/11/business/economy/federal-reserve-treasury-bills.html
@dmd Not only for randy. For L1’s and above
For At&T the last 2 reason are real. For sure!!! Haha. Keep em’ coming for randy and the hang !!!!
Relevance to anything?
Them po’ ol’ executives need all the help they can get.
Got to keep those bonuses coming.
They should start with bigger bonuses for Executives , they deserve it. :-)