Worried about the future, many companies moved to buy back their own stock this year. In 2011, buybacks are up 49 percent, with this year on track to reach $ 540 billion in buyback authorizations, according to Birinyi Associates. That would be the third-highest tally in U.S. history after 2006 ($655 billion) and 2007 ($863 billion).
During the first nine months of the year, companies actually completed $376 billion in stock buybacks. That already exceed the $ 343 billion in buybacks completed last year and is well over the paltry $ 156 billion carried out in 2009. “Companies are still concerned about making capital investments, but they have an abundant amount of cash in their balance sheets”, said Jeffrey Yale Rubin, director of research for Birinyi Associates. “Buybacks are the way they’re going.” Thus far in 2011, the financial sector has had the largest number of authorized buyback programs, followed by consumer discretionary companies and industrials. Technology firms, on the other hand, have authorized the largest amount in terms of dollars, followed by the healtcare sector.
From: Top Stories 2011; Traders Magazine: James Armstrong, Dec. 2011
Bianca Fersini Mastelloni is Chairman and CEO of Polytems HIR. She is a seasoned consultant in Corporate Communication with extensive experience for over 30 years. Since 1999 she is active in Investor Relations and Financial Communication for companies listed on the major financial markets. Bianca provides strategic IR, corporate access in Italy, Europe, USA, investor’s market intelligence, profiling investors, critical communication and reputation. A scholar of issues pertaining to Communications and Investor Relations. Bianca studied at SUNY – State University of New York, Buffalo and at Boston University, Boston, and she works as lecturer with some Italian University.
Bianca is author of the book Investor Relations ed Etica , Efficacia e Vantaggi Competitivi - edited from Guerini e Associati - as of as several articles about Investor Relations and financial communication.
Bianca has been selected as the most influential CEO 2023 in Italy for Investor Relations and Financial Communications by CEO Monthly, the international publisher of AI Global Media.
