In this article, we discuss the 5 companies that announced huge share buybacks recently. If you want to read about some more firms that just announced share buybacks, go directly to 10 Companies That Announced Huge Share Buybacks Recently.
5. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 64
Chevron Corporation (NYSE:CVX) is an integrated oil and gas firm. In January this year, Chevron Corporation announced the authorization of a $75 billion stock buyback program, reflecting the confidence in the financial position and commitment to returning value to shareholders. The company also recently announced plans to drill in the gas-rich sites of African nation Algeria. The firm had previously announced plans to sell energy assets in Congo for nearly $1.5 billion.
On June 1, investment advisory RBC Capital upgraded Chevron Corporation (NYSE:CVX) stock to Outperform from Sector Perform and raised the price target to $180 from $165, noting the firm had effectively used its premium multiple to acquire companies in recent years.
At the end of the first quarter of 2023, 64 hedge funds in the database of Insider Monkey held stakes worth $23 billion in Chevron Corporation (NYSE:CVX), up from 57 in the preceding quarter worth $32 billion.
In its Q4 2022 investor letter, Carillon Tower Advisers highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:
“Energy performed well during the fourth quarter, with the sector up about 23%. Investors returned to the sector after the Organization of the Petroleum Exporting Countries (OPEC) signaled it would reduce production. Chevron Corporation (NYSE:CVX) reported strong quarterly results while buying back stock, paying a healthy dividend, and maintaining a strong balance sheet.”
4. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 96
ServiceNow, Inc. (NYSE:NOW) provides enterprise cloud computing solutions that define, structure, consolidate, manage, and automate services for enterprises worldwide. On May 17, the shares of the firm soared after it announced on investor day that it would launch its first-ever share buyback program worth $1.5 billion. The firm made the decision on the back of a hike to operating margin guidance in 2024 and the prospects in artificial intelligence.
On May 30, Bernstein analyst Peter Weed maintained an Overweight rating on ServiceNow, Inc. (NYSE:NOW) stock and raised the price target to $665 from $586, noting the firm was a huge $7 billion revenue business with very high penetration of the F500, G2000, and beyond.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in ServiceNow, Inc. (NYSE:NOW) with 808,897 shares worth more than $375 million.
In its Q2 2022 investor letter, Ensemble Capital, an asset management firm, highlighted a few stocks and ServiceNow, Inc. (NYSE:NOW) was one of them. Here is what the fund said:
“ServiceNow, Inc. (NYSE:NOW) is an enterprise software company that helps its corporate customers integrate all of their various software products into a unified platform. Their products are a key element in driving the digital transformation nearly every large company is undergoing. At the recent JP Morgan investor day, CEO Jamie Dimon explained that while the company could reduce expenses if needed should the economy slow, their spending on digital transformation would continue as this spending was critical to the company managing costs and maximizing revenue over time. As an example of this type of spending, Dimon specifically pointed to ServiceNow, calling out that the company’s products now oversaw the single largest collection of JP Morgan data and highlighted that working with them had saved JP Morgan $50 million over the past few years. (click here to read more…)
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 131
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. In early May, the company announced plans for a new $90 billion share buyback program. The announcement was made while the firm posted earnings for the second fiscal quarter, reporting earnings per share of $1.52, beating estimates by $0.09. The revenue over the period was more than $94 billion, beating expectations by $2 billion.
On June 2, Morgan Stanley analyst Erik Woodring maintained an Overweight rating on Apple Inc. (NASDAQ:AAPL) stock and raised the price target to $190 from $185, noting that AR/VR could become the next $20 billion-plus standalone compute platform for Apple.
At the end of the first quarter of 2023, 131 hedge funds in the database of Insider Monkey held stakes worth $165 billion in Apple Inc. (NASDAQ:AAPL), compared to 135 in the previous quarter worth $136 billion.
In its Q2 2022 investor letter, Alger Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.”
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) provides various products and platforms such as Google Services, Google Cloud, and YouTube. In April, the company said it had authorized a $70 billion shares buyback program. In April 2022, the board of directors of the firm had approved a similar $70 billion share buyback program. In 2022, the firm was one of the top firms in terms of share buybacks, only beaten by tech rival Apple.
On April 23, investment advisory Jefferies maintained a Buy rating on Alphabet Inc. (NASDAQ:GOOG) stock and raised the price target to $150 from $130, noting that hyperscalers, data clouds and large differentiated platforms were best positioned to benefit from artificial intelligence.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel investment Group is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 24 million shares worth more than $2.5 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Alphabet Inc. (NASDAQ:GOOG) is the parent company of Google, the world’s largest search and online advertising company. Shares of Alphabet declined 21.6% in the quarter due to concerns about slower global growth impacting the company’s core advertising business. We retain conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in Cloud, AI, and Autonomous Driving (through its Waymo subsidiary).”
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 220
Meta Platforms, Inc. (NASDAQ:META) is a tech firm that owns and runs social media platforms. In April, the parent company of Facebook reported lower fourth-quarter profit and revenue due to a downturn in online advertising and competition from platforms like TikTok. Despite this, the shares jumped as revenue surpassed expectations and a $40 billion stock buyback was announced.
On May 23, Piper Sandler analyst Thomas Champion maintained an Overweight rating on Meta Platforms, Inc. (NASDAQ:META) stock with a price target of $270, backing the firm to use AI to drive higher user engagement, develop better, more automated advertiser tools, and create an open-source AI ecosystem.
At the end of the first quarter of 2023, 220 hedge funds in the database of Insider Monkey held stakes worth $25 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 194 in the preceding quarter worth $15 billion.
In its Q1 2023 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:
“Our top contributors in Q1 were Meta Platforms, Inc. (NASDAQ:META), Warner Bros Discovery (WBD) and FedEx. Following sharp declines in 2022, shares of Meta Platforms have more than doubled since their early November 2022 lows. Last year’s drawdown created a highly favorable risk-reward, which we took advantage of by adding to our position. Management has wisely, in our view, recalibrated its spending plans to focus on profitability amid a weaker advertising environment, increased TikTok competition and Apple’s privacy changes. While investors got ahead of themselves back in 2021, extrapolating pandemic growth rates into the future, Meta is still a highly successful enterprise generating over $120 billion of revenue annually on a run-rate basis and has more than $40 billion in cash on its balance sheet to help it navigate its future course. Recent usage and engagement trends for Facebook and Instagram have been positive, and Reels—Meta’s answer to TikTok—is gaining traction.”
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