Buyback |
The table below ranks the 274 companies in the S&P 500 that bought back at least 4 percent of their shares from June 30, 2012, through June 30, 2014. The companies are ranked according to their return on investment from these repurchases. As calculated by Fortuna Advisors, a New York City-based consultancy that compiled the data for Institutional Investor , buyback ROI measures the overall rate of return of buybacks, based on the internal rate of return of the cash flows associated with them. Buyback strategy tracks the performance of the underlying stock in terms of annualized total shareholder return. Once Fortuna determines buyback ROI and buyback strategy, buyback effectiveness can then be calculated as simply the difference between the two, determined as compounded return.
How the S&P 500 Stack Up | ||||||||
| Company | Industry | Market Capitalization | $ Total Buyback | $ Total Buyback / Market Cap | Buyback Strategy | Buyback Effectiveness | Buyback ROI | |
| Average | $47,210 | $3,341 | 8.5% | 24.7% | 0.0% | 24.5% | ||
| Median | $21,878 | $1,619 | 7.4% | 24.9% | 0.1% | 24.0% | ||
| 251 | Dollar Tree | Retailing | 11,263 | 1,376 | 12.2 | 1.6 | 0.9 | 2.5 |
| 252 | CH Robinson Worldwide | Transportation | 9,468 | 1,010 | 10.7 | 0.9 | 1.5 | 2.4 |
| 253 | Philip Morris International | Food, Beverage and Tobacco | 132,609 | 11,710 | 8.8 | 3.9 | -1.9 | 1.9 |
| 254 | Fossil Group | Consumer Durables and Apparel | 5,594 | 914 | 16.3 | 5.1 | -3.4 | 1.6 |
| 255 | Altera Corp. | Semiconductors and Semiconductor Equipment | 10,889 | 724 | 6.7 | 0.2 | 1.1 | 1.3 |
| 256 | Quest Diagnostics | Healthcare Equipment and Services | 8,480 | 1,194 | 14.1 | 2.6 | -2.1 | 0.5 |
| 257 | Discovery Communications | Media | 21,191 | 2,308 | 10.9 | 22.3 | -18.9 | -0.8 |
| 258 | International Business Machines Corp. | Software and Services | 183,478 | 31,680 | 17.3 | -0.9 | 1.7 | 0.8 |
| 259 | Citigroup | Banks | 143,080 | 2,463 | 1.7 | 26.1 | -22.7 | -2.5 |
| 260 | NetApp | Technology Hardware and Equipment | 11,814 | 2,440 | 20.7 | 1.6 | -5.1 | -3.6 |
| 261 | Staples | Retailing | 7,009 | 507 | 7.2 | -5.4 | 1.2 | -4.2 |
| 262 | Target Corp. | Retailing | 36,723 | 2,206 | 6.0 | 3.9 | -9.4 | -5.8 |
| 263 | eBay | Software and Services | 63,443 | 5,114 | 8.1 | 14.2 | -18.0 | -6.4 |
| 264 | Bed Bath & Beyond | Retailing | 11,588 | 2,252 | 19.4 | -5.1 | -1.9 | -6.9 |
| 265 | Citrix Systems | Software and Services | 10,250 | 2,058 | 20.1 | -12.2 | 5.5 | -7.4 |
| 266 | Mattel | Consumer Durables and Apparel | 13,221 | 653 | 4.9 | 13.6 | -18.7 | -7.6 |
| 267 | PetSmart | Retailing | 5,933 | 829 | 14.0 | 3.0 | -10.4 | -7.8 |
| 268 | Ralph Lauren Corp. | Consumer Durables and Apparel | 14,208 | 970 | 6.8 | 0.2 | -8.2 | -8.0 |
| 269 | Navient Corp. | Diversified Financials | 7,487 | 720 | 9.6 | 15.9 | -21.3 | -8.8 |
| 270 | Intuitive Surgical | Healthcare Equipment and Services | 15,815 | 2,332 | 14.7 | -14.7 | 4.9 | -10.6 |
| 271 | Urban Outfitters | Retailing | 4,664 | 364 | 7.8 | 11.9 | -23.9 | -14.8 |
| 272 | Teradata Corp. | Software and Services | 6,340 | 806 | 12.7 | -20.7 | 0.9 | -20.1 |
| 273 | Coach | Consumer Durables and Apparel | 9,374 | 925 | 9.9 | -18.7 | -1.9 | -20.3 |
| 274 | Whole Foods Market | Food and Staples Retailing | 14,199 | 603 | 4.2 | 1.4 | -21.7 | -20.5 |
| Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from June 2012 to June 2014. Includes the 490 members of the current S&P 500 that were public for the full period. Market Capitalization as of: 06/01/2014. Companies Included here if $ Total Buyback / Market Capitalization is greater than 4% or if $ Total Buyback is greater than $1 Billion. | ||||||||
