Targeting stocks with recently announced buyback programs can be beneficial for several reasons. Buyback programs can be seen as a signal of confidence by the company’s management in the future prospects of the business. When a company announces a buyback program, it indicates that it believes its stock is undervalued and that it has excess cash available to repurchase shares, which can be interpreted as a positive sign for investors. Buybacks can also potentially increase the value of the remaining shares by reducing the total number of shares outstanding, which could lead to higher earnings per share and potentially higher stock prices.
Here are three stock buybacks for the week –
Peabody Energy Corporation – SYM: BTU
Recent Price: $24.33
Buyback Action: The Board of Directors authorized a new $1 billion share repurchase program, equal to around 26.3% of its market cap at announcement.
Description: Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Brazil, Belgium, Chile, France, Indonesia, China, Vietnam, South Korea, and internationally.
Muscle Maker, Inc. – SYM: GRIL
Recent Price: $1.25
Buyback Action: The Board of Directors authorized a new share repurchase of $2 million of the company’s Class A common stock, equal to 5% of its market cap at announcement.
Description: Muscle Maker, Inc. owns, operates, and franchises Muscle Maker Grill, SuperFit Foods meal prep, and Pokemoto Hawaiian Poke restaurants. The company operates a fast-casual restaurant that specializes in preparing protein-based meals featuring chicken, seafood, pasta, hamburgers, wraps, and flat breads, as well as entrée salads and sides, protein shakes, and fruit smoothies. It also operates under the Meal Plan AF, Muscle Maker Burger Bar, Bowls Deep, Burger Joe’s, Wrap It Up, Salad Vibes, Mr. T’s House of Boba, and Gourmet Sandwich brand names. It operates restaurants in California, Florida, Georgia, Kansas, Maryland, Massachusetts, Mississippi, New Jersey, New York, Connecticut, North Carolina, Oklahoma, Pennsylvania, Tennessee, Texas, Virginia, and Washington, as well as in Kuwait. The company was incorporated in 2014 and is based in League City, Texas.
SEI Investments Company – SYM: SEIC
Recent Price: $57.77
Buyback Action: The Board of Directors authorized an additional $250 million share repurchase program of the company’s Class A common stock, representing around 3.2% of its market cap at announcement.
Description: SEI Investments Company is a publicly owned asset management holding company. Through its subsidiaries, the firm provides wealth management, retirement and investment solutions, asset management, asset administration, investment processing outsourcing solutions, financial services, and investment advisory services to its clients. It provides its services to private banks, independent financial advisers, institutional investors, investment managers, investment advisors, wealth management organizations, corporations, retirement scheme sponsors, not-for-profit organizations, hedge fund managers, registered investment advisers, independent broker-dealers, financial planners, life insurance agents, defined-benefit schemes, defined-contribution schemes, endowments, foundations, and board-designated fund, through its subsidiaries. Through its subsidiaries, the firm manages separate client-focused portfolios. It also launches and manages equity, fixed income, and balanced mutual funds, through its subsidiaries. Through its subsidiaries, the firm invests in public equity and fixed income markets. It employs fundamental and quantitative analysis with a focus on top-down and bottom-up analysis to make its investments, through its subsidiaries. SEI Investments Company was founded in 1968 and is based in Oaks, Pennsylvania.