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Cboe Global (CBOE) Authorizes Share Buyback Plan Worth $150M
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The board of directors of Cboe Global Markets, Inc. (CBOE - Free Report) has recently authorized a share buyback program to return more to its shareholders. The latest authorization will allow the company to spend up to an additional $150 million to repurchase its common stock, effective immediately.
The authorization will be added to the existing share repurchase program amounting to nearly $75 million. With the new approval, the company will now have approximately $225 million left under the share buyback program. Earlier, the company had $97 million remaining under its share repurchase authorization as of Dec 31, 2017.
Cboe Global’s solid balance sheet and liquidity position have provided the required support in enhancing shareholders’ value through prudent share buybacks and consistent dividend payments. Further, the company has been lowering debt level and making strategic investments to accelerate its overall growth and also boost the long-term shareholder value.
In fact, Cboe Global’s financial strength allows it to execute share repurchases successfully. As of Dec 31, 2017, the company had cash and cash equivalents worth $143.5 million, up 47.5% from the 2016-end level. Operating cash flow for the year ending Dec 31, 2017 was $385.6 million (up 67.9% year over year).
Additionally, the company believes that such an endeavor signifies management’s confidence in Cboe Global’s growth prospects as well as commitment to shareholders.
Share repurchases benefit the company’s earnings per share, book value as well as shareholder equity as shares outstanding reduce. Therefore, share repurchase programs raise optimism among investors and raise their confidence in a stock.
Zacks Rank and Share Price Movement
Cboe Global holds a Zacks Rank #2 (Buy). Shares of the company have outperformed the industry in a year’s time. The stock has surged 38.9% in comparison to the industry’s rally of 25.7%. We expect the company’s compelling inorganic growth, improving transaction fees and a solid capital position to drive the stock higher.
CME Group operates contract markets for the trading of futures and options on futures contracts worldwide. The company delivered positive surprises in all the last four quarters with an average beat of 2.15%.
Intercontinental Exchange operates regulated exchanges, clearing houses and listings venues for financial and commodity markets in the United States, the United Kingdom, Continental Europe, Asia, Israel and Canada. The company came up with positive surprises in three of the last four quarters with an average beat of 1.04%.
Nasdaq provides trading, clearing, exchange technology, regulatory, securities listing, information and public company services worldwide. The company pulled off positive surprises in all the trailing four quarters with an average beat of 4.72%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Cboe Global (CBOE) Authorizes Share Buyback Plan Worth $150M
The board of directors of Cboe Global Markets, Inc. (CBOE - Free Report) has recently authorized a share buyback program to return more to its shareholders. The latest authorization will allow the company to spend up to an additional $150 million to repurchase its common stock, effective immediately.
The authorization will be added to the existing share repurchase program amounting to nearly $75 million. With the new approval, the company will now have approximately $225 million left under the share buyback program. Earlier, the company had $97 million remaining under its share repurchase authorization as of Dec 31, 2017.
Cboe Global’s solid balance sheet and liquidity position have provided the required support in enhancing shareholders’ value through prudent share buybacks and consistent dividend payments. Further, the company has been lowering debt level and making strategic investments to accelerate its overall growth and also boost the long-term shareholder value.
In fact, Cboe Global’s financial strength allows it to execute share repurchases successfully. As of Dec 31, 2017, the company had cash and cash equivalents worth $143.5 million, up 47.5% from the 2016-end level. Operating cash flow for the year ending Dec 31, 2017 was $385.6 million (up 67.9% year over year).
Additionally, the company believes that such an endeavor signifies management’s confidence in Cboe Global’s growth prospects as well as commitment to shareholders.
Share repurchases benefit the company’s earnings per share, book value as well as shareholder equity as shares outstanding reduce. Therefore, share repurchase programs raise optimism among investors and raise their confidence in a stock.
Zacks Rank and Share Price Movement
Cboe Global holds a Zacks Rank #2 (Buy). Shares of the company have outperformed the industry in a year’s time. The stock has surged 38.9% in comparison to the industry’s rally of 25.7%. We expect the company’s compelling inorganic growth, improving transaction fees and a solid capital position to drive the stock higher.
Other Stocks to Consider
Investors interested in other stocks from the same space might also consider CME Group Inc. (CME - Free Report) , Intercontinental Exchange, Inc. (ICE - Free Report) and Nasdaq, Inc. (NDAQ - Free Report) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CME Group operates contract markets for the trading of futures and options on futures contracts worldwide. The company delivered positive surprises in all the last four quarters with an average beat of 2.15%.
Intercontinental Exchange operates regulated exchanges, clearing houses and listings venues for financial and commodity markets in the United States, the United Kingdom, Continental Europe, Asia, Israel and Canada. The company came up with positive surprises in three of the last four quarters with an average beat of 1.04%.
Nasdaq provides trading, clearing, exchange technology, regulatory, securities listing, information and public company services worldwide. The company pulled off positive surprises in all the trailing four quarters with an average beat of 4.72%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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