In this article, we discuss 20 stocks that are aggressively buying back shares according to Goldman Sachs. If you want to see more stocks in this selection, check out 5 Stocks That Are Aggressively Buying Back Shares According To Goldman Sachs.
Goldman Sachs US equity strategy chief David Kostin noted in the beginning of November that despite Q3 GDP exceeding expectations, the US economy still appears to be headed towards a recession. During the earnings season, US stocks continued to rise, even though Q3 earnings per share growth was only 2% year-over-year, instead of the expected 3%.
Importance of Buybacks
When a company engages in stock buybacks and is financially stable, it is a positive indication for investors as it shows management’s confidence in the company’s future and belief that shares are undervalued. This increases returns for existing shareholders as fewer shares in circulation increases the value of each remaining share. However, Kostin observed that although the volume of stock buybacks increased in the third quarter, the amount spent on repurchasing shares has decreased throughout 2022. In Q1, buybacks in the S&P 500 rose by 51% year-over-year and in Q2, they increased by 7% year-over-year.
Instead of buybacks, companies are prioritizing R&D and dividends, which are predicted to increase by 10% and 5% year-over-year, respectively, as per Goldman Sachs. Some firms that are aggressively buying back shares according to Goldman Sachs include Lowe’s Companies, Inc. (NYSE:LOW), Marathon Petroleum Corporation (NYSE:MPC), and Marathon Oil Corporation (NYSE:MRO). Investors can also check out 10 Value Stocks with Big Buybacks and 10 Stocks with Biggest Buybacks.
Our Methodology
Goldman Sachs searched for stocks that have a net buyback yield of at least 5%, which means these companies have repurchased 5% or more of their shares outstanding in proportion to their market capitalization over the past year, and have increased their buyback rate during that period. Below is a list of 20 companies that increased buybacks by at least 5% in the previous 12 months as of November 2, along with net buyback yield for each and share price returns from November 2, 2022 to January 30, 2023. We have also mentioned the hedge fund sentiment around the securities as of the third quarter of 2022. The list is ranked in ascending order of net buyback yield.
Source:Pixabay
Stocks That Are Aggressively Buying Back Shares According To Goldman Sachs
20. Fortinet, Inc. (NASDAQ:FTNT)
Share Price Returns From November 2, 2022 to January 30, 2023: -2.44%
Number of Hedge Fund Holders: 47
Net Buyback Yield: 5%
Fortinet, Inc. (NASDAQ:FTNT) is a California-based provider of integrated and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. On December 14, Fortinet, Inc. (NASDAQ:FTNT) reported that 5 new providers of managed security services have chosen Fortinet Secure SD-WAN to improve their customers’ business outcomes and experiences. The net buyback yield came in at 5% as per Goldman Sachs data. On January 27, Mizuho analyst Gregg Moskowitz downgraded Fortinet, Inc. (NASDAQ:FTNT) to Neutral from Buy with an unchanged price target of $60.
According to Insider Monkey’s data, 47 hedge funds were long Fortinet, Inc. (NASDAQ:FTNT) at the end of Q3 2022, compared to 43 funds in the prior quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is the largest stakeholder of the company, with 4.85 million shares worth $238.3 million.
In addition to Lowe’s Companies, Inc. (NYSE:LOW), Marathon Petroleum Corporation (NYSE:MPC), and Marathon Oil Corporation (NYSE:MRO), Fortinet, Inc. (NASDAQ:FTNT) is one of the firms that are actively buying back shares.
Here is what ClearBridge Investments had to say about the prospects of Fortinet, Inc. (NASDAQ:FTNT) in its Q3 2021 investor letter:
“Performance among our cohort of IT and Internet companies was mixed, with enterprise software makers thriving while more consumer-oriented stocks faced headwinds. Cyber security software maker Fortinet benefited from a heightened awareness of the need to protect against sophisticated attacks. We are attracted to the recurring revenue nature of these software companies that are increasingly delivering their products on a subscription basis through the cloud. Software business models also tend to avoid many of the inflationary issues facing companies with a physical product or service.”
19. ConocoPhillips (NYSE:COP)
Share Price Returns From November 2, 2022 to January 30, 2023: -3.35%
Number of Hedge Fund Holders: 64
Net Buyback Yield: 5%
ConocoPhillips (NYSE:COP) is a Texas-based company that explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. On November 22, Sempra (NYSE:SRE) announced that it has signed a 20-year agreement with ConocoPhillips (NYSE:COP) to receive 5 million metric tons per year of liquefied natural gas from Phase 1 of the proposed Port Arthur LNG project located in southern Texas. ConocoPhillips (NYSE:COP) will also obtain a 30% stake in Phase 1 of the Port Arthur LNG and will be responsible for managing the supply of natural gas to the first phase of the proposed liquefaction plant. It is one of the stocks that are aggressively repurchasing stock.
On January 23, Barclays analyst Jeanine Wai raised the firm’s price target on ConocoPhillips (NYSE:COP) to $160 from $151 and maintained an Overweight rating on the shares.
According to Insider Monkey’s third quarter database, ConocoPhillips (NYSE:COP) was part of 64 hedge fund portfolios, compared to 71 in the prior quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder of the company, with nearly 7 million shares worth $708.5 million.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and ConocoPhillips (NYSE:COP) was one of them. Here is what the fund said:
“We redeployed capital into ConocoPhillips (NYSE:COP), which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”
18. CF Industries Holdings, Inc. (NYSE:CF)
Share Price Returns From November 2, 2022 to January 30, 2023: -19.58%
Number of Hedge Fund Holders: 65
Net Buyback Yield: 6%
CF Industries Holdings, Inc. (NYSE:CF) is an Illinois-based provider of anhydrous ammonia, granular urea, urea ammonium nitrate, and ammonium nitrate products for energy, fertilizer, emissions abatement, and industrial applications worldwide. On January 17, CF Industries Holdings, Inc. (NYSE:CF) and JERA, Japan’s leading energy producer, agreed to a memorandum of understanding to supply up to 500,000 metric tons of pure ammonia annually starting in 2027. CF Industries Holdings, Inc. (NYSE:CF)’s net buyback yield stood at 6% as per Goldman Sachs data.
On January 27, Barclays analyst Benjamin Theurer maintained an Overweight rating on CF Industries Holdings, Inc. (NYSE:CF) and lowered the firm’s price target on the shares to $115 from $120. The analyst noted that the collective of companies in the fertilizer, crop protection, and seed industries will announce their Q4 results in the upcoming weeks and he has revised his projections and made slight changes to the price targets in preparation for earnings.
According to Insider Monkey’s data, 65 hedge funds were long CF Industries Holdings, Inc. (NYSE:CF) at the end of the third quarter of 2022, up from 52 funds in the last quarter. Eric W. Mandelblatt’s Soroban Capital Partners is the biggest stakeholder of the company, with 2.4 million shares worth $239.4 million.
Here is what Chartwell Investment Partners has to say about CF Industries Holdings, Inc. (NYSE:CF) in its Q2 2022 investor letter:
“We sold the full position in fertilizer company CF Industries, which also had a 20%+ YTD return (through 6/30), as we had concerns that the company would announce capacity additions, which would negatively impact nitrogen pricing.”
17. NetApp, Inc. (NASDAQ:NTAP)
Share Price Returns From November 2, 2022 to January 30, 2023: -3.96%
Number of Hedge Fund Holders: 36
Net Buyback Yield: 6%
NetApp, Inc. (NASDAQ:NTAP) is a California-based company that offers cloud-based and data-focused services to handle and distribute data both on-site and across private and public clouds globally. The company paid a $0.50 per share quarterly dividend to shareholders on January 25. It is one of the stocks that are largely buying back shares.
On January 10, Barclays analyst Tim Long downgraded NetApp, Inc. (NASDAQ:NTAP) to Equal Weight from Overweight with a price target of $71, down from $83. According to the analyst, he downgraded the stock due to a more prudent outlook on the conventional IT hardware sector. He forecasts a difficult macroeconomic scenario for 2023.
According to Insider Monkey’s data, 36 hedge funds were bullish on NetApp, Inc. (NASDAQ:NTAP) at the end of Q3 2022, and Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the largest stakeholder of the company, with 1.7 million shares worth $107 million.
Here is what Miller Howard Investments has to say about NetApp, Inc. (NASDAQ:NTAP) in its Q3 2021 investor letter:
“Technology remains important in our portfolios, although the sector weights have come down over the past year. We now hold NetApp (NTAP) of which has a strong growth prospects, yet attractive valuations in our view. Unlike many younger tech companies, we believe our holdings should significantly benefit from an upturn in the economy.”
16. Comcast Corporation (NASDAQ:CMCSA)
Share Price Returns From November 2, 2022 to January 30, 2023: 28.07%
Number of Hedge Fund Holders: 73
Net Buyback Yield: 6%
Comcast Corporation (NASDAQ:CMCSA) operates as a media and technology company worldwide. On January 26, Comcast Corporation (NASDAQ:CMCSA) declared a $0.29 per share quarterly dividend, a 7.4% increase from its prior dividend of $0.27. The dividend is payable on April 26, to shareholders of record on April 5. The company also posted a Q4 non-GAAP EPS of $0.82 and a revenue of $30.55 billion, outperforming Wall Street estimates by $0.04 and $190 million, respectively.
On January 27, Pivotal Research analyst Jeffrey Wlodarczak raised the price target on Comcast Corporation (NASDAQ:CMCSA) to $47 from $42 and kept a Buy rating on the shares after the “mostly in-line” Q4 results. The analyst moved to a year-end 2023 price target.
According to Insider Monkey’s data, 73 hedge funds were bullish on Comcast Corporation (NASDAQ:CMCSA) at the end of September 2022, compared to 75 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with 31.6 million shares worth $928 million.
ClearBridge Investments made the following comment about Comcast Corporation (NASDAQ:CMCSA) in its Q3 2022 investor letter:
“The Strategy was not completely insulated to macro headwinds and some companies saw tough comparisons after strong pull forwards in demand during the COVID-19 pandemic. Media companies including Comcast Corporation (NASDAQ:CMCSA) were hurt by both factors in the quarter.
After extremely strong broadband growth during the early days of the pandemic, Comcast is now experiencing slowing to negative growth in its broadband business due to new competition and less consumer moving activity along with headwinds on the programming side, where advertising budgets have been more stressed.”
15. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)
Share Price Returns From November 2, 2022 to January 30, 2023: 11.00%
Number of Hedge Fund Holders: 25
Net Buyback Yield: 6%
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is a Minnesota-based company that provides freight transportation services and logistics solutions to companies worldwide. On November 17, C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) declared a $0.61 per share quarterly dividend, a 10.9% increase from its prior dividend of $0.55. The dividend was distributed on January 3. As per Goldman Sachs data, C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)’s net buyback yield stood at 6%.
On January 17, investment advisory BofA downgraded C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) to Underperform from Neutral with a price target of $88, down from $95. Analyst Ken Hoexter issued the ratings update.
Among the hedge funds tracked by Insider Monkey, Frederick Disanto’s Ancora Advisors held a prominent stake in C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) at the end of September 2022, comprising 2.26 million shares worth $218.12 million.
14. CSX Corporation (NASDAQ:CSX)
Share Price Returns From November 2, 2022 to January 30, 2023: 6.22%
Number of Hedge Fund Holders: 61
Net Buyback Yield: 7%
CSX Corporation (NASDAQ:CSX) is a Florida-based provider of rail-based freight transportation services. On January 25, the company reported Q4 GAAP earnings per share of $0.49 and a revenue of $3.73 billion was achieved, indicating a 9% rise compared to the previous year. This was due to factors such as a higher fuel surcharge, improved pricing, and a boost in revenues from storage. CSX Corporation (NASDAQ:CSX) is one of the stocks with strong repurchase authorizations as per Goldman Sachs.
On January 26, Cowen analyst Jason Seidl raised the target price for CSX Corporation (NASDAQ:CSX) stock to $35 from $33, while maintaining a Market Perform rating. The analyst acknowledged that the fourth quarter results were better than expected but expressed a cautious outlook for 2023, indicating no expected growth in earnings.
According to Insider Monkey’s data, 61 hedge funds were long CSX Corporation (NASDAQ:CSX) at the end of Q3 2022, compared to 63 funds in the prior quarter. John Armitage’s Egerton Capital Limited held a notable position in the company, consisting of 16 million shares worth $430 million.
Here is what ClearBridge Investments Global Infrastructure Value Strategy has to say about CSX Corporation (NYSE:CSX) in its Q4 2021 investor letter:
“On a regional basis, the U.S. and Canada were the top contributors to quarterly performance, of which U.S. rail operator CSX was among the lead performers. CSX is one of five leading North American rail companies, with over 21,000 miles of rail, covering 23 states and 40+ ports. CSX is engaged in the transportation of rail freight in the Southeast, East, and Midwest via interchange with other rail carriers, to and from the rest of the U.S. and Canada. CSX performed well during the quarter after the company beat market expectations on its third-quarter results. The beats were largely driven by strong pricing, which could be hitting record highs, and healthy commodity/coal volume driven by the current energy crisis.”
13. Darden Restaurants, Inc. (NYSE:DRI)
Share Price Returns From November 2, 2022 to January 30, 2023: 7.80%
Number of Hedge Fund Holders: 27
Net Buyback Yield: 7%
Darden Restaurants, Inc. (NYSE:DRI) is a Florida-based company that owns and operates full-service restaurants in the United States and Canada. On December 16, Darden Restaurants, Inc. (NYSE:DRI) declared a $1.21 per share quarterly dividend, in line with previous. The dividend is payable on February 1, to shareholders of record as of January 10. The net buyback yield as per Goldman Sachs’ November data stood at 7%. For FY 2023, Darden Restaurants, Inc. (NYSE:DRI) expects total sales ranging from $10.3 billion to $10.45 billion, up from the prior view of $10.2 billion to $10.4 billion, versus a consensus of $10.32 billion.
On January 18, JPMorgan analyst John Ivankoe raised the firm’s price target on Darden Restaurants, Inc. (NYSE:DRI) to $154 from $145 and maintained an Overweight rating on the shares. The analyst believes that the restaurant industry is experiencing a unique and favorable combination of events, with a clearer understanding of food and labor costs combined with the highest menu prices in a year.
According to Insider Monkey’s Q3 data, 27 hedge funds held long positions in Darden Restaurants, Inc. (NYSE:DRI), compared to 32 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital held the largest position in the company, with 1.06 million shares worth $134 million.
12. LKQ Corporation (NASDAQ:LKQ)
Share Price Returns From November 2, 2022 to January 30, 2023: 11.54%
Number of Hedge Fund Holders: 32
Net Buyback Yield: 8%
LKQ Corporation (NASDAQ:LKQ) was incorporated in 1998 and is headquartered in Chicago, Illinois. The company specializes in supplying spare parts, components, and systems for fixing and maintaining vehicles. On January 13, Raymond James analyst Sam Darkatsh raised the price target on LKQ Corporation (NASDAQ:LKQ) to $65 from $60 and reiterated an Outperform rating on the shares ahead of the Q4 earnings release in February. Pricing and peer commentary remain healthy, strengthening core organic NA P&S activity in Q4 and FY23, the analyst wrote in a research note.
According to Insider Monkey’s data, 32 hedge funds were bullish on LKQ Corporation (NASDAQ:LKQ) at the end of the third quarter of 2022, compared to 31 funds in the last quarter. ValueAct Capital is the biggest stakeholder of the company, with 12.5 million shares worth $592 million.
Bonsai Partners mentioned LKQ Corporation (NASDAQ: LKQ) in its first-quarter 2021 investor letter. Here’s what they said:
“LKQ is the largest provider of alternative collision and mechanical automotive parts in the United States. In Europe, they are the leading distributor of general automotive maintenance parts and supplies. Its shares appreciated 20.1% during the quarter.
During the quarter, LKQ shared its fourth-quarter results: showing a slight revenue decline and a nearly 30% increase in quarterly profit Vs. the same period last year. COVID has proved a surprising catalyst for my investment thesis which revolves around optimizing their recent large acquisitions that were never efficiently integrated.
Admittedly, in addition to LKQ’s quarterly performance, thematically, there has been broad enthusiasm for “re-opening” trades, of which, LKQ has been a beneficiary. Most importantly, the prior overhang related to LKQ’s debt burden is now all but behind us. Their net debt to EBITDA ratio now sits below 2x, a stark change from the near 3x leverage ratio before the pandemic. At that time, LKQ’s leverage had the potential to spiral upward to nearly 4-5x if the business experienced a prolonged shutdown. It’s good to be past this issue.”
11. The Mosaic Company (NYSE:MOS)
Share Price Returns From November 2, 2022 to January 30, 2023: -5.41%
Number of Hedge Fund Holders: 46
Net Buyback Yield: 8%
The Mosaic Company (NYSE:MOS) is a Florida-based company that produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. On December 16, The Mosaic Company (NYSE:MOS) declared a $0.20 per share quarterly dividend, a 33.3% increase from its prior dividend of $0.15. The dividend is payable on March 16, to shareholders of the company as of March 2.
On January 24, UBS analyst Joshua Spector downgraded The Mosaic Company (NYSE:MOS) to Neutral from Buy, citing a more balanced risk/ reward outlook for the downgrade.
According to Insider Monkey’s third quarter database, 46 hedge funds were long The Mosaic Company (NYSE:MOS), compared to 50 funds in the prior quarter. Kerr Neilson’s Platinum Asset Management held a significant position in the company, comprising 2.8 million shares worth $137.4 million.
Ariel Investment made the following comment about The Mosaic Company (NYSE:MOS) in its Q3 2022 investor letter:
“Producer and marketer of crop nutrients The Mosaic Company (NYSE:MOS) also traded up in the period on solid financial results. MOS continues to demonstrate its ability to raise prices and offset input cost inflation, as well as return significant capital to shareholders through buybacks. Meanwhile, trade flows have shifted with Russia and Belarus, the second and third largest fertilizer exporters globally, banning exports and facing sanctions imposed by the West. As a result, MOS is expanding production to help meet global demand. Given management’s optimistic outlook and disciplined approach towards capital allocation, we continue to believe the company is well positioned from a risk/reward standpoint.”
10. The Allstate Corporation (NYSE:ALL)
Share Price Returns From November 2, 2022 to January 30, 2023: 4.47%
Number of Hedge Fund Holders: 38
Net Buyback Yield: 11%
The Allstate Corporation (NYSE:ALL) provides property and casualty insurance products in the United States and Canada. The company operates through Allstate Protection, Protection Services, Allstate Health and Benefits, and Run-off Property-Liability segments. On December 2, The Allstate Corporation (NYSE:ALL) announced that it aims to generate long-term adjusted net income ROE of 14% to 17%. It is one of the stocks that are actively repurchasing shares as per Goldman Sachs, with a net buyback yield of 11%.
On January 19, BMO Capital analyst Michael Zaremski initiated coverage of The Allstate Corporation (NYSE:ALL) with a Market Perform rating and a $130 price target. While the analyst appreciates The Allstate Corporation (NYSE:ALL)’s pricing power, he believes the company will rebuild capital with lower buybacks.
According to Insider Monkey’s third quarter database, 38 hedge funds were bullish on The Allstate Corporation (NYSE:ALL), compared to 37 funds in the earlier quarter. Cliff Asness’ AQR Capital Management is the largest position holder in the company, with 847,602 shares worth $105.5 million.
Appleseed Fund, an investment management firm, published its second-quarter 2021 investor letter, and mentioned The Allstate Corporation (NYSE:ALL). Here is what the fund said:
“Allstate is the second-largest personal insurance company in the United States with a 9.3% share in auto insurance (4th largest) and an 8.0% share in homeowner’s insurance (2nd largest). The company sells products primarily through its captive agents though this business line is shrinking as the company’s direct (Esurance.com and, more recently, Allstate.com) and independent agent businesses grow more quickly. The personal insurance industry is relatively consolidated, and competition has historically been rational, allowing Allstate to earn attractive mid-teen returns on equity in this business over the past decade. Allstate also recently announced plans to divest their low-growth, low-return life and annuity businesses. This will free up capital to reinvest into the more attractive personal insurance segment and result in improvements on consolidated returns on equity of approximately 2.5%.
Despite the attractive industry dynamics of the personal insurance business and the steps that Allstate has taken to dispose of lower return businesses, the company’s stock currently trades as if Allstate will never be able to grow its earnings. At our purchase price, Allstate’s stock was trading for less than 10.0x forward earnings estimates. While Allstate does face tough competition in the auto insurance business from GEICO and Progressive, their market position, strong brand, and increased investment into the direct insurance business should allow them to grow earnings. Overall, we believe this entry price is attractive for an industry leader in a high-return, consolidating industry. Further, downside risk management should be positively impacted by the dividend yield, a strong balance sheet, and a management team that has historically increased share repurchases when they view the stock to be trading below its intrinsic value.”
9. Assurant, Inc. (NYSE:AIZ)
Share Price Returns From November 2, 2022 to January 30, 2023: 0.82%
Number of Hedge Fund Holders: 25
Net Buyback Yield: 12%
Assurant, Inc. (NYSE:AIZ) is a New York-based company that provides lifestyle and housing solutions that support, protect, and complement consumer purchases in North America, Latin America, Europe, and the Asia Pacific. On January 19, Assurant, Inc. (NYSE:AIZ) declared a $0.70 per share quarterly dividend, in line with previous. The dividend is distributable on March 20, to shareholders of record on February 27. Assurant, Inc. (NYSE:AIZ)’s net buyback yield came in at 12%, making it one of the stocks that are aggressively repurchasing stocks according to Goldman Sachs.
On December 20, Piper Sandler analyst John Barnidge maintained a Neutral rating on Assurant, Inc. (NYSE:AIZ) and lowered the price target on the shares to $133 from $144 ahead of the Q4 results. The analyst said that macro factors have begun to more directly impact the company’s profitability in the quarter.
According to Insider Monkey’s data, 25 hedge funds were long Assurant, Inc. (NYSE:AIZ) at the end of Q3 2022, compared to 23 funds in the prior quarter. Andrew Wellington and Jeff Keswin’s Lyrical Asset Management is the leading position holder in the company, with 919,934 shares worth $133.6 million.
8. Qorvo, Inc. (NASDAQ:QRVO)
Share Price Returns From November 2, 2022 to January 30, 2023: 30.48%
Number of Hedge Fund Holders: 35
Net Buyback Yield: 12%
Qorvo, Inc. (NASDAQ:QRVO) is a North Carolina-based company that develops and commercializes technologies and products for wireless, wired, and power markets worldwide. On November 2, Qorvo, Inc. (NASDAQ:QRVO) announced a new stock repurchase program of up to $2 billion. It is one of the most prominent firms that are aggressively buying back shares.
On January 23, Barclays analyst Blayne Curtis raised the price target on Qorvo, Inc. (NASDAQ:QRVO) to $110 from $85 and kept an Equal Weight rating on the shares. The analyst rolled out 2024 estimates and became more optimistic on the semiconductor group but incrementally more negative on semiconductor capital equipment. The analyst prefers stocks in 2023 that offer exposure to data center, PCs, and handset.
According to Insider Monkey’s data, 35 hedge funds were long Qorvo, Inc. (NASDAQ:QRVO) at the end of Q3 2022, compared to 30 funds in the last quarter. Seth Klarman’s Baupost Group held the largest stake in the company, comprising 6.7 million shares worth $538 million.
Here is what Vulcan Value Partners has to say about Qorvo, Inc. (NASDAQ:QRVO) in its Q1 2022 investor letter:
“Qorvo Inc. is one of the two major providers of radio frequency RF systems which are critical components of mobile devices including smartphones and the Internet of Things (IoT). Two transitory concerns have recently affected the company’s stock price. First, supply chain issues continue to be a constraint. Second, Apple recently announced its decision to decrease production of its iPhone SE model. Neither of these issues threatens their long-term competitive position. Qorvo’s value is stable and despite the recent pressure on the stock price, we feel its long-term prospects are promising.”
7. DXC Technology Company (NYSE:DXC)
Share Price Returns From November 2, 2022 to January 30, 2023: -0.32%
Number of Hedge Fund Holders: 62
Net Buyback Yield: 12%
DXC Technology Company (NYSE:DXC) provides information technology services and solutions in North America, Europe, Asia, and Australia. It operates in two segments, Global Business Services and Global Infrastructure Services. DXC Technology Company (NYSE:DXC)’s net buyback yield as per Goldman Sachs data stood at 12%. In November 2022, the company reaffirmed its longer-term guidance. It expects positive organic revenue growth of 1% to 3%, non-GAAP diluted earnings per share of $5.00 to $5.25, and free cash flow of approximately $1.5 billion in fiscal year 2024.
On January 19, MoffettNathanson analyst Lisa Ellis downgraded DXC Technology Company (NYSE:DXC) to Underperform from Market Perform with a price target of $28, down from $32. According to the recent CIO survey released by the firm two weeks ago, there will be a continued high demand for IT services in 2023, but the analyst believes that not all companies will benefit from this trend.
According to Insider Monkey’s third quarter database, 62 hedge funds were bullish on DXC Technology Company (NYSE:DXC), compared to 56 funds in the prior quarter. Larry Robbins’ Glenview Capital is the leading position holder in the company, with 9.6 million shares worth $236 million.
Carillon Tower made the following comment about DXC Technology Company (NYSE:DXC) in its Q3 2022 investor letter:
“DXC Technology Company (NYSE:DXC) is a global provider of IT services including analytics, applications, business process, cloud, security, and other solutions. Margin pressure and unfavorable currency fluctuations pressured earnings in the prior quarter, resulting in a shortfall to consensus estimates.”
6. American International Group, Inc. (NYSE:AIG)
Share Price Returns From November 2, 2022 to January 30, 2023: 11.17%
Number of Hedge Fund Holders: 48
Net Buyback Yield: 13%
American International Group, Inc. (NYSE:AIG) is a New York-based company that offers insurance products for commercial, institutional, and individual customers in North America and internationally. On January 19, BMO Capital analyst Michael Zaremski initiated coverage of American International Group, Inc. (NYSE:AIG) with a Market Perform rating and a $64 price target. AIG “refilled its reserves cookie jar” enough during the 4Q19-2Q22 difficult pricing market, which is important given lingering questions over policies written under previous American International Group, Inc. (NYSE:AIG) management teams, the analyst told investors in a research note.
According to Insider Monkey’s third quarter database, 48 hedge funds were long American International Group, Inc. (NYSE:AIG), compared to 44 funds in the preceding quarter. Harris Associates is the leading position holder in the company, with 22.5 million shares worth $1 billion.
Like Lowe’s Companies, Inc. (NYSE:LOW), Marathon Petroleum Corporation (NYSE:MPC), and Marathon Oil Corporation (NYSE:MRO), American International Group, Inc. (NYSE:AIG) is engaged in meaningful buy back activity.
Diamond Hill Capital made the following comment about American International Group, Inc. (NYSE:AIG) in its Q3 2022 investor letter:
“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer, media and technology giant Alphabet, and insurance company American International Group, Inc. (NYSE:AIG).
AIG reported strong Q2 earnings, but volatile capital markets led to delays in the IPO of the company’s life and retirement business and concerns about the quality of the company’s investment portfolio. We continue to believe AIG has one of the best management teams in the industry, and they’ve been executing well on turning the business around and improving underwriting and expense control.”
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Disclosure: None. 20 Stocks That Are Aggressively Buying Back Shares According To Goldman Sachs is originally published on Insider Monkey.
