Morgan Stanley | In 2021, we saw record volumes of buybacks ($882 billion). And while we estimate that volumes will remain in a range of $850-1 trn, the pressure on margins derived from the uptick in costs could start to put pressure on EPS as well as on future buybacks. To find out whether companies are going to continue with buyback programmes…or if they will adopt a policy of keeping…
Like any unaware retail investor, CEOs buy high and sell low. So now that markets are up and, even though big European corporates have been flush with cash over the last 5-7 years, “the buzz word is about buy-backs again,” says Carax-Alphavalue’s analysts.
A buyback is the repurchase by a company of its outstanding shares in the stock market. They can have a variety of intentions for doing that, but the most immediate impact is to keep the share price higher than it would be without this additional demand.