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Regions Financial Stock Up 5.3% After Announcing Share Repurchase Plan

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Key Takeaways

  • Regions Financial approved a new $3B repurchase plan effective January 2026 through December 2027.
  • The authorization replaces the current plan, under which 61M shares were repurchased.
  • Repurchases will vary based on market conditions, capital generation, and loan growth.

Shares of Regions Financial Corporation (RF - Free Report) gained nearly 5.3% following the announcement of a new share repurchase program on Wednesday. The company's board of directors approved a new share repurchase program worth up to $3 billion of its common stock. The authorization should be effective from Jan. 1, 2026, and will remain in place through Dec. 31, 2027.

This new authorization will supersede the existing program, which is set to expire on Dec. 31, 2025. As of Sept. 30, 2025, RF had already repurchased approximately 61 million shares for $1.3 billion under that plan.

The timing and amount of repurchases will depend on factors such as market conditions, internal capital generation, and capital consumed through loan growth or other uses. Repurchases may be executed through open-market transactions, accelerated share repurchase agreements, or privately negotiated deals, including those conducted under Rule 10b5-1 programs.

RF's Other Capital Distribution Actions

Apart from buybacks, Regions Financial continues to return capital through dividends. In July 2025, the company increased its quarterly common stock dividend by 6% to 26 cents per share. Over the last five years, RF has raised its dividend five times, with a five-year annualized dividend growth rate of 13.37%.

Based on yesterday’s closing price of $27.84, the company’s annualized dividend yield stands at 3.81%, well above the industry average of 2.33%. This reflects an attractive income stream for shareholders.

Dividend Yield

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RF’s liquidity position also remains sound. As of Sept. 30, 2025, the company reported $62 billion in liquidity sources, while total debt stood at $6.08 billion. Given its solid liquidity profile, the company is expected to continue with efficient capital distribution activities.

RF’s Price Performance and Zacks Rank

Shares of RF have gained 10.4% against the industry’s 1.3% decline over the past year.

Price Performance

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Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Share Buyback Announcements by Other Finance Firms

A few days ago, Ally Financial Inc.’s (ALLY - Free Report) board of directors authorized a multi-year share repurchase program to repurchase shares worth up to $2 billion. The buybacks will begin this quarter, and the program does not have a set expiration date.

Although ALLY has not repurchased any shares since 2023, the company is expected to be able to sustain enhanced capital distributions in the future, supported by its robust liquidity position and earnings strength.

Last week, Raymond James Financial, Inc. (RJF - Free Report) announced a new share repurchase program alongside an 8% increase in quarterly cash dividends.

Under the buyback plan, RJF will be able to repurchase up to $2 billion worth of shares. The plan does not have an expiration date. This new program will replace the existing share repurchase plan of $1.5 billion, announced in December 2024. As of Dec. 2, 2025, roughly $105 million shares were available for repurchase.


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