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3 Companies Committed to Boosting Shareholder Value
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Stock buybacks, or share repurchase programs, are commonly executed by companies to boost shareholder value.
A stock buyback occurs when a company purchases outstanding shares of its stock. In its simplest form, buybacks represent companies essentially re-investing in themselves.
And several companies – Morgan Stanley (MS - Free Report) , Logitech International (LOGI - Free Report) , and Chubb Limited (CB - Free Report) – have unveiled new repurchase programs over the summer. Let’s take a closer look at each.
Chubb Limited
Chubb, a Zacks Rank #2 (Buy), is the world's largest publicly traded property and casualty insurance company. Analysts have taken their earnings expectations modestly higher across all timeframes over the last several months.
Image Source: Zacks Investment Research
Income-focused investors could be attracted to CB, with shares currently yielding 1.7% annually paired with a sustainable 21% payout ratio. And the company has shown a commitment to increasingly rewarding shareholders, with the payout growing by 3.3% annually over the last five years.
Image Source: Zacks Investment Research
In addition, shares aren’t stretched regarding valuation, with the current 11.2X forward earnings multiple (F1) nicely beneath the 13.9X five-year median and its Zacks industry average of 32.4X. The stock sports a Style Score of “B” for Value.
Image Source: Zacks Investment Research
Morgan Stanley
Morgan Stanley is a leading financial services holding company serving corporations, governments, financial institutions, and individuals worldwide. The company’s latest quarterly results came in nicely above expectations, with MS delivering an 8% EPS beat and a 5% revenue surprise.
Shares saw a boost initially post-earnings but have since given back their gains, as shown below.
Image Source: Zacks Investment Research
Like CB, Morgan Stanley rewards its shareholders nicely, with shares currently yielding a sizable 4% annually. Dividend growth is apparent, as the company boasts a solid 28% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Logitech International
Logitech develops and markets innovative products in PC navigation, Internet communications, digital music, home entertainment control, video security, interactive gaming, and wireless devices.
Analysts have taken a bullish stance for its upcoming quarterly release expected in October, with the $0.66 Zacks Consensus EPS Estimate 6.5% higher since June.
Image Source: Zacks Investment Research
The company has consistently exceeded quarterly expectations, beating the Zacks Consensus EPS Estimate by an average of 15% across its last four releases. Logitech posted a sizable 40% EPS beat in its latest print and reported revenue 6% ahead of expectations.
Shares saw bullish activity post-earnings and have continued their momentum, as shown below.
Image Source: Zacks Investment Research
Bottom Line
A common way that companies boost shareholder value is through implementing share buybacks. They can provide a nice confidence boost for investors, indicating that the company is utilizing excess cash and can help put in a floor for shares.
And over the summer, all three companies above – Morgan Stanley (MS - Free Report) , Logitech International (LOGI - Free Report) , and Chubb Limited (CB - Free Report) – unveiled additional or fresh buyback programs.
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3 Companies Committed to Boosting Shareholder Value
Stock buybacks, or share repurchase programs, are commonly executed by companies to boost shareholder value.
A stock buyback occurs when a company purchases outstanding shares of its stock. In its simplest form, buybacks represent companies essentially re-investing in themselves.
And several companies – Morgan Stanley (MS - Free Report) , Logitech International (LOGI - Free Report) , and Chubb Limited (CB - Free Report) – have unveiled new repurchase programs over the summer. Let’s take a closer look at each.
Chubb Limited
Chubb, a Zacks Rank #2 (Buy), is the world's largest publicly traded property and casualty insurance company. Analysts have taken their earnings expectations modestly higher across all timeframes over the last several months.
Image Source: Zacks Investment Research
Income-focused investors could be attracted to CB, with shares currently yielding 1.7% annually paired with a sustainable 21% payout ratio. And the company has shown a commitment to increasingly rewarding shareholders, with the payout growing by 3.3% annually over the last five years.
Image Source: Zacks Investment Research
In addition, shares aren’t stretched regarding valuation, with the current 11.2X forward earnings multiple (F1) nicely beneath the 13.9X five-year median and its Zacks industry average of 32.4X. The stock sports a Style Score of “B” for Value.
Image Source: Zacks Investment Research
Morgan Stanley
Morgan Stanley is a leading financial services holding company serving corporations, governments, financial institutions, and individuals worldwide. The company’s latest quarterly results came in nicely above expectations, with MS delivering an 8% EPS beat and a 5% revenue surprise.
Shares saw a boost initially post-earnings but have since given back their gains, as shown below.
Image Source: Zacks Investment Research
Like CB, Morgan Stanley rewards its shareholders nicely, with shares currently yielding a sizable 4% annually. Dividend growth is apparent, as the company boasts a solid 28% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Logitech International
Logitech develops and markets innovative products in PC navigation, Internet communications, digital music, home entertainment control, video security, interactive gaming, and wireless devices.
Analysts have taken a bullish stance for its upcoming quarterly release expected in October, with the $0.66 Zacks Consensus EPS Estimate 6.5% higher since June.
Image Source: Zacks Investment Research
The company has consistently exceeded quarterly expectations, beating the Zacks Consensus EPS Estimate by an average of 15% across its last four releases. Logitech posted a sizable 40% EPS beat in its latest print and reported revenue 6% ahead of expectations.
Shares saw bullish activity post-earnings and have continued their momentum, as shown below.
Image Source: Zacks Investment Research
Bottom Line
A common way that companies boost shareholder value is through implementing share buybacks. They can provide a nice confidence boost for investors, indicating that the company is utilizing excess cash and can help put in a floor for shares.
And over the summer, all three companies above – Morgan Stanley (MS - Free Report) , Logitech International (LOGI - Free Report) , and Chubb Limited (CB - Free Report) – unveiled additional or fresh buyback programs.