Targeting stocks with recently announced buyback programs can be beneficial for investors. 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 –
Xunlei Limited – SYM: XNET
Recent Price: $1.84
Buyback Action: The Board of Directors authorized a new $20 million share repurchase program, equal to around 18.8% of its market cap at announcement.
Description: Xunlei Limited, together with its subsidiaries, operates an Internet platform for digital media content. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content.
Scorpio Tankers Inc. – SYM: STNG
Recent Price: $44.61
Buyback Action: The Board of Directors authorized a new $250 million share repurchase program, equal to around 9.7% of its market cap at announcement.
Description: Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of refined petroleum products in the shipping markets worldwide. As of March 23, 2023, its fleet consisted of 113 owned, finance leased, or bareboat chartered-in tankers, including 39 LR2, 60 MR, and 14 Handymax with a weighted average age of approximately 7.2 years. The company was incorporated in 2009 and is headquartered in Monaco.
Sharecare, Inc. – SYM: SHCR
Recent Price: $1.74
Buyback Action: The Board of Directors authorized a new $50 million share repurchase program of the company’s Class A common stock, representing around 9.4% of its market cap at announcement.
Description: Sharecare, Inc. operates as a digital healthcare platform company. Its Sharecare platform connects people, patients, providers, employers, health plans, government organizations, and communities that optimize individual and population-wide well-being. The company offers enterprise solutions based on a software-as-a-service model that allows enterprise clients to message, motivate, and manage their populations, as well as measure their population progress; a suite of data and information-driven solutions; and life sciences solutions, which provides members with personalized information, programs, and resources to enhance their health and well-being. It also operates RealAge, a platform for health assessment to assess behaviors and existing conditions of its members and provide metric for their physical health. In addition, the company provides secure, automated release of information, audit, and business consulting services to streamline the medical records process for medical facilities. It sells its solutions through direct sales organization and partner relationships. The company was founded in 2009 and is headquartered in Atlanta, Georgia.