Market trends

Are increased Q3 buybacks a signal of executive confidence?

AlphaSense

|

November 18, 2020


Blue dollar bills with AI staff members.
Blue dollar bills with AI staff members.

The US GDP gained significant momentum in Q3, increasing by 7.4% over the previous quarter and recovering about two-thirds of the ground it lost amidst the coronavirus pandemic earlier this year. While we’re not out of the COVID hole quite yet, with the economy still 3.5% smaller than it was at the end of last year, increases in buyback volume could signal executive’s confidence in some sectors.

Against this backdrop of a growing, yet still the vulnerable economy, 120+ major corporations repurchased shares in Q3. Notably, Q3 purchase volume increased by 55% over Q2. Which companies are riding the wave and repurchasing their stock? Take a look at the list we’ve compiled of companies over a $5B market cap below.

Takeaways:

  • In Q3, 120+ companies repurchased a collective $60.3B, representing a 55% increase from Q2. Apple, Alphabet, Microsoft accounted for 52.2% of total buybacks with a combined $31.53B in buybacks in Q3
  • 25 companies repurchased >1% of their market capitalization within Q3 with Biogen continuing it’s program momentum, repurchasing 3.26% of market cap in Q3 after repurchasing over 6% in Q2
  • Information technology companies overtook Financials firms’ dominance in Q2 in representing the highest percentage of buybacks by volume, accounting for 28.1% of total repurchases in Q3
  • Repurchases from Apple and Microsoft once again led the Information Technology sector to dominate in terms of the total dollar value of buybacks in Q3, with the IT sector accounting for 48.4% of total buyback dollar value. Together, Apple and Microsoft’s buybacks account for 81% of repurchase dollar value within IT
  • Communications Services firms represented only 3.3% total buyback volume, but 22.2% of buyback dollar value with $13.37B in repurchases. Facebook and Alphabet accounted for 72% of the total buyback volume within the sector with a combined $9.63B in repurchases
  • Charter Communications was the 2nd largest buyer in Communications Services this quarter topping Facebook’s $1.73B, repurchasing $3.26B, representing 2.54% of their market capitalization
  • Dominion Energy ranked in the top 5 repurchases in Q3, buying back $2.23B, accounting for 81% of all Utility buybacks

AlphaSense’s AI technology picks up on nuances in human language found in SEC filings, event transcripts, and thousands of premium business documents in real-time across the entire market, by industry, or watchlist. Start your free trial of AlphaSense now or log in to your account.

 

We looked at companies with >$5B market cap and tracked 10Q filings from Q3’20 to see which industries repurchased the most stock by total dollar value repurchased.

 

We looked at companies with >$5B market cap and tracked 10Q filings from Q3’20 to see which industries were repurchasing their stock.

 

Company July Volume

Aug Volume

Sept Volume July Price Aug Price Sept Price Amount Repurchased (in billions) % Market Cap Repurchased
Apple Inc

67,990,000

43,119,000

60,725,000

$94.68

$115.99

$114.00

$18.36

0.91%

Alphabet Inc

1,454,000

1,592,000

2,114,000

$1,513.19

$1,561.67

$1,518.52

$7.90

0.67%

Microsoft Corp

9,748,145

7,797,300

7,606,666

$206.48

$213.96

$208.88

$5.27

0.33%

Charter Communication Inc

1,188,061

1,915,988

2,362,246

$537.54

$607.06

$615.83

$3.26

2.54%

Dominion Energy

3,673,314

24,829,124

$78.46

$78.40

$2.23

3.37%

Mastercard Inc

3,468,650

1,540,748

1,468,424

$302.71

$330.88

$340.07

$2.06

0.61%

Procter & Gamble

7,384,222

7,257,329

$135.42

$137.79

$2.00

0.58%

Facebook

2,310,000

2,205,000

2,205,000

$239.04

$268.67

$267.27

$1.73

0.22%

Biogen Inc

2,025,000

2,458,413

$283.69

$274.78

$1.25

3.37%

L3Harris Technologies Inc

5,055,208

1,336,140

$179.73

$180.58

$1.15

2.79%

eBay Inc

5,772,309

8,119,269

3,848,055

$54.68

$56.46

$51.97

$0.97

2.91%

Cigna Corp

1,180,578

2,349,942

1,438,383

$179.88

$178.78

$169.35

$0.88

1.15%

Anthem Inc

969,800

609,001

1,275,933

$264.56

$277.75

$260.93

$0.76

0.95%

Amgen Inc

1,069,984

1,004,844

960,100

$252.92

$242.72

$246.50

$0.75

0.57%

Sempra Energy

3,296,251

793,124

$122.27

$122.27

$0.50

1.30%

Sirius XM Holdings Inc

15,046,929

30,750,000

40,000,000

$5.85

$5.93

$5.40

$0.49

1.81%

Lam Research Group

483,000

861,000

$372.37

$327.63

$0.46

0.75%

Progressive Corp

1,600,514

1,602,786

1,683,519

$87.87

$90.44

$93.99

$0.44

0.80%

O’Reilly Automotive Inc

84,000

269,000

612,000

$423.09

$464.13

$461.24

$0.44

1.34%

Sherwin Williams Co

50,000

275,000

275,000

$648.56

$657.39

$695.43

$0.40

0.62%

Aflac Inc

2,045,100

3,913,300

4,957,427

$35.76

$36.98

$36.79

$0.40

1.33%

Union Pacific Corp

4,045,575

$98.93

$0.40

0.29%

Colgate-Palmolive

1,795,000

2,888,380

$77.56

$76.78

$0.36

0.50%

Ameriprise Financial Inc

433,550

621,055

1,013,362

$151.84

$157.76

$152.48

$0.32

1.47%

Cognizant Technology Solutions Corp

4,100,000

$68.81

$0.28

0.71%

Wayfair Inc

843,941

$331.65

$0.28

1.20%

McKesson Corp

300,000

1,500,000

$152.66

$150.93

$0.27

0.96%

Gilead Sciences Inc

790,000

1,333,000

1,389,000

$75.48

$68.04

$64.30

$0.24

0.31%

Fleetcor Technologies Inc

412

999,503

$217.19

$238.43

$0.24

1.09%

Automatic Data Processing Inc

90,684

683,298

878,407

$132.36

$138.39

$136.45

$0.23

0.30%

Santander Consumer USA Holdings Inc

558,400

9,640,400

$18.60

$22.10

$0.22

3.15%

MSCI Inc

6,623

591,408

$348.20

$345.35

$0.21

0.62%

Amphenol Corporation

47,400

860,372

961,676

$105.46

$108.11

$108.05

$0.20

0.54%

Mettler Toledo International Inc

104,644

102,725

$955.37

$973.69

$0.20

0.73%

Loews Corp

1,250,171

4,154,083

$36.56

$35.82

$0.19

1.64%

Kimberly Clark Corp

162,100

541,200

570,700

$149.85

$156.80

$148.83

$0.19

0.40%

KLA Corporation

290,245

737,436

$206.72

$181.57

$0.19

0.52%

SS&C Technologies Holdings Inc

200,000

2,600,000

300,000

$57.05

$61.75

$61.64

$0.19

1.10%

Verisign Inc

289,000

264,000

270,000

$207.00

$208.39

$204.45

$0.17

0.77%

Arista Networks Inc

209,000

594,000

$219.86

$204.09

$0.17

0.81%

Honeywell International Inc

400,000

611,000

$0.00

$154.77

$165.53

$0.16

0.12%

AGNC Investment Corp

5,900,000

5,100,000

$13.92

$13.98

$0.15

1.85%

Arrow Electronics Inc

734,394

1,209,454

$74.87

$78.55

$0.15

2.27%

Carlisle Cos Inc

200,000

500,000

500,000

$119.07

$126.12

$123.35

$0.15

1.92%

T. Rowe Price Group Inc

32,814

1,090,792

$128.93

$126.64

$0.14

0.45%

Avalonbay Communities Inc

287,792

624,941

$152.90

$149.51

$0.14

0.58%

Globe Life Inc

592

531,837

1,053,872

$72.53

$83.72

$80.99

$0.13

1.34%

Illumina Inc

55,000

64,000

259,000

$369.87

$350.59

$316.65

$0.12

0.29%

Service Corporation International

894,191

251,996

1,710,983

$38.52

$46.06

$42.37

$0.12

1.40%

Bank of America Corp

5,000

3,891,000

104,000

$23.70

$27.90

$26.47

$0.11

0.05%

Celanese Corp

481,961

578,929

$101.73

$107.78

$0.11

0.72%

Advance Auto Parts Inc

191,730

524,278

$155.19

$152.31

$0.11

1.09%

SEI Investments Company

250,000

775,000

1,085,000

$51.65

$52.89

$50.54

$0.11

1.37%

Vertex Pharmaceuticals Inc

310,562

92,157

$270.48

$260.42

$0.11

0.19%

The Blackstone Group Inc

142,857

999,999

857,144

$54.28

$53.14

$52.21

$0.11

0.15%

Motorola Solutions Inc

203,313

67,273

443,815

$131.52

$148.64

$154.41

$0.11

0.37%

Qorvo Inc

175,000

397,000

265,000

$110.64

$131.59

$126.06

$0.11

0.64%

Juniper Networks Inc

2,600,000

1,600,000

$24.50

$23.03

$0.10

1.40%

Regeneron Pharmaceuticals Inc

179,824

$558.55

$0.10

0.18%

Equitable Holdings Inc

3,259,806

1,473,143

$21.28

$20.80

$0.10

0.91%

Clorox Co

443,848

$225.30

$0.10

0.39%

PNC

919,000

$107.50

$0.10

0.18%

Ubiquiti Inc

55,333

546,670

$182.97

$159.99

$0.10

0.64%

American Financials Group

130,900

516,500

800,188

$59.71

$66.80

$66.53

$0.10

1.24%

Cadence Design Systems Inc

269,493

225,108

221,970

$100.33

$109.80

$105.16

$0.08

0.24%

Assurant Inc

242,000

335,476

$123.28

$120.03

$0.07

0.88%

Alleghany Corp

51,171

80,243

$547.08

$523.34

$0.07

0.80%

Jack Henry & Associates

300,000

100,000

$166.39

$159.57

$0.07

0.54%

Alexion Pharmaceuticals Inc

200,000

400,000

$102.63

$111.59

$0.07

0.24%

Lockheed Martin Corp

163,220

$363.74

$0.06

0.06%

Howmet Aerospace Inc

31,755

2,875,339

$18.59

$17.34

$0.05

0.50%

CSX Corp

557,454

147,611

$68.10

$68.99

$0.05

0.07%

Brunswick Corp

738,926

$60.90

$0.05

0.81%

Dolby Laboratories Inc

491,333

151,363

$69.92

$70.27

$0.04

0.50%

CBOE Global Markets Inc

170,141

295,225

$90.46

$89.60

$0.04

0.44%

Dropbox Inc

590,000

590,000

620,000

$21.82

$20.70

$19.84

$0.04

0.49%

Nasdaq Inc

149,897

109,756

$130.83

$130.67

$0.03

0.17%

Corteva Inc

1,159,748

$28.28

$0.03

0.12%

Gentex Corp

125,110

525,295

525,351

$27.07

$27.38

$26.44

$0.03

0.40%

Syneos Health Inc

506,244

$59.26

$0.03

0.46%

Booz Allen Hamilton Holding Group

394,262

$76.09

$0.03

0.25%

Factset Research Systems Inc

47,428

37,295

$344.03

$355.76

$0.03

0.25%

Trimble Inc

574,973

$48.70

$0.03

0.20%

Essex Portfolio LP

121,260

$219.24

$0.00

$0.00

$0.03

0.16%

Fair Isaac Corp

24,000

35,600

$426.55

$421.32

$0.03

0.18%

Estee Lauder Companies Inc

369

114,053

$190.81

$219.79

$0.03

0.03%

Jones Lang Lasalle Inc

258,131

$96.82

$0.02

0.35%

Jabil Inc

80,750

455,893

223,628

$31.52

$32.23

$34.67

$0.02

0.44%

Robert Half International Inc

448,873

$52.37

$0.02

0.32%

Sealed Air Corp

521,498

$38.37

$0.02

0.29%

Morningstar Inc

41,957

80,063

$158.90

$158.04

$0.02

0.23%

Texas Instruments Inc

68,088

40,951

877

$129.15

$131.33

$134.78

$0.01

0.01%

Akamai Technologies Inc

50,566

69,431

$109.52

$110.33

$0.01

0.08%

Proofpoint Inc

112,000

$104.82

$0.01

0.21%

Pegasystems Inc

42,000

26,000

26,000

$109.36

$120.08

$124.88

$0.01

0.11%

TopBuild Corp

24,524

33,286

$152.87

$157.67

$0.01

0.15%

Brown & Brown Inc

132,851

$44.29

$0.01

0.04%

Pool Corp

19,613

$299.17

$0.01

0.05%

Bruker Corp

127,278

$39.28

$0.00

0.07%

OGE Energy Corp

150,000

$33.14

$0.00

0.07%

Prosperity Bancshares Inc

98,028

$49.99

$0.00

0.09%

Archer Daniels Midland

102

106,337

172

$41.77

$43.53

$47.61

$0.00

0.02%

Marketaxess Holding Inc

600

3,000

5,148

$520.18

$493.15

$463.40

$0.00

0.02%

Paycom Software Inc

8,894

$318.28

$0.00

0.01%

Arthur J Gallagher & Co

2,124

688

17,465

$102.73

$105.39

$105.08

$0.00

0.01%

CACI International Inc

10,455

$198.42

$0.00

0.03%

The Wendy’s Co

21,202

59,900

$21.82

$21.00

$0.00

0.03%

Quidel Corp

10,157

$156.99

$0.00

0.02%

Royal Gold Inc

6,527

$136.59

$0.00

0.01%

McDonald’s Corp

1,896

1,802

261

$192.40

$207.27

$205.33

$0.00

0.00%

Harley-Davidson Inc

7,541

20,069

$28.00

$26.00

$0.00

0.01%

ON Semiconductor Corp

13,519

10,916

$21.09

$22.27

$0.00

0.00%

Leidos Holdings Inc

4,177

$0.00

$0.00

$88.43

$0.00

0.00%

Polaris Inc

1,000

2,000

$91.71

$96.50

$0.00

0.01%

Reliance Steel and Aluminum Co

2,466

$100.00

$0.00

0.00%

BWX Technologies Inc

3,887

405

500

$46.58

$57.75

$54.99

$0.00

0.00%

Commerce Bancshares Inc

609

1,757

496

$57.29

$60.02

$55.83

$0.00

0.00%

Intercontinental Exchange Inc

1,503

73

$93.75

$96.66

$0.00

0.00%

Ball Corp

1,618

$69.49

$0.00

0.00%

Ametek Inc

764

$94.95

$0.00

0.00%

Extra Space Storage

600

$90.81

$0.00

0.00%

Share this article

More like this

Market trends

5 data analytics trends in investment banking

Digital transformation, long-emerging, has officially arrived in investment banking. Driving this transformation is the power of data analytics, giving institutions...

Clock Icon12 min read