Welcome!

News Feed Item

S&P 500 Stock Buybacks Decrease in Third Quarter

Company Buyback Activity Erratic in Q3; Mixed Results Seen for Q4

NEW YORK, Dec. 27, 2012 /PRNewswire/ -- S&P Dow Jones Indices announced today that preliminary results show that S&P 500 stock buyback activity decreased 7.2% to $103.7 billion during the third quarter of 2012, a decrease from the $111.7 billion spent on buybacks during the second quarter of the year. Through the third quarter of this year, companies have spent $17.7 billion less on buybacks than through the third quarter of last year.

"Company buyback activity has been erratic over the past three months," says Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "Given the continued uncertainty of the fiscal cliff and the potential impact on spending, companies may have taken a cautious approach to stock buybacks in the fourth quarter.  In the background, however, is some talk of companies needing more shares to meet employee options, with more being exercised near year-end due to the anticipated tax change."

Of significance during the third quarter was Johnson & Johnson's $12.2 billion share repurchases, ranking as the highest expenditure for the quarter. Johnson & Johnson's share repurchases ($12.9 billion) was also ranked the highest during the second quarter. Both periods included the buybacks associated with the Synthes and Express Scripts merger.

Buybacks have become top heavy over the past year, with the top 20 issues accounting for 38.0% of the total buyback expenditure in the third quarter of last year, as compared to 53.4% in the current period. "Still companies are broadly participating, with 258 issues reducing their overall diluted share count (buybacks less issuance), and 192 increasing (in Q3)," adds Silverblatt. "More relevant is that 125 issues reduced their count by at least 1%, while only 23% increased it by at least 1%."

On a sector basis, Silverblatt notes that S&P 500 Health Care issues dominated the quarter with $21.8 billion in buybacks (down from $23.8 billion during the second quarter), with Information Technology second with $18.0 billion in buybacks, compared to $21.6 billion last quarter.  Energy reduced their expenditures to $6.5 billion during the third quarter from $10.7 billion.

For the fourth quarter of 2012, Silverblatt sees mixed results for buybacks, as companies react to the uncertainty over policy, but act to protect their EPS. "At this point, 2013 has a base of buybacks needed to cover stock options, many of which are solidly in the money. The determining factor will be the market and the need for shares.  If the uncertainty clears up, companies will need more shares (and expenditures) to cover options, as well as more for M&A, which is expected to follow a more stable economy." 

Historical S&P 500 buyback data can be found at: www.marketattributes.standardandpoors.com.

 

S&P Dow Jones Indices





S&P 500, $ U.S. BILLIONS





PERIOD

MARKET

AS REPORTED



DIVIDEND &


VALUE

EARNINGS

DIVIDENDS

BUYBACKS

BUYBACK 


$ BILLIONS

$ BILLIONS

$ BILLIONS

$ BILLIONS

YIELD

09/28/2012 Prelim.

$12,881

$189.64

$69.48

$103.72

5.08%

6/30/2012

$12,303

$195.27

$67.31

$111.75

5.35%

3/31/2012

$12,730

$208.15

$64.07

$84.29

5.09%

12/31/2011

$11,385

$186.76

$65.89

$87.59

5.67%

09/30/2011

$10,303

$206.08

$59.20

$118.41

6.14%

6/30/2011

$12,021

$202.44

$59.03

$109.24

4.88%

3/31/2011

$12,068

$195.15

$56.08

$89.84

4.52%

12/31/2010

$11,430

$187.67

$54.85

$86.36

4.42%

09/30/2010

$10,336

$176.80

$51.26

$79.56

4.45%

06/30/2010 

$9,323

$178.00

$50.44

$77.64

4.41%

03/31/2010

$10,560

$157.85

$49.28

$55.26

3.36%

12/31/2009

$9,928

$135.14

$49.04

$47.82

3.36%

09/30/2009

$9,337

$130.37

$47.21

$34.85

3.71%

06/30/2009

$8,045

$118.22

$47.63

$24.20

5.17%

03/31/2009 

$6,928

$65.29

$51.73

$30.78

7.13%

12/31/2008

$7,852

-$202.11

$62.19

$48.12

7.48%

09/30/2008

$10,181

$86.16

$61.44

$89.71

6.73%

06/30/2008

$11,163

$112.15

$61.94

$87.91

6.88%

03/30/2008

$11,511

$135.24

$61.72

$113.90

7.25%

12/31/2007

$12,868

$68.53

$67.09

$141.71

6.49%

09/30/2007

$13,470

$133.66

$61.21

$171.95

5.89%

06/30/2007

$13,350

$194.30

$59.76

$157.76

5.44%

03/31/2007

$12,706

$190.75

$58.53

$117.70

5.35%

12/31/2006

$12,729

$181.65

$61.79

$105.18

5.16%

S&P Dow Jones Indices




S&P 500 20 LARGEST Q3 2012 BUYBACKS, $ MILLIONS



Company

SECTOR

Q3,'12

BUYBACKS




Q3,'12-Q4,'04

Johnson & Johnson

Healthcare

$12,183

$51,512

Exxon Mobil

Energy

$8,000

$20,855

ConocoPhillips

Energy

$5,098

$189,716

Intl Bus. Machines

Information Technology

$3,751

$29,810

AT&T

Telecommunication Services

$3,076

$23,883

Oracle Corporation

Information Technology

$2,986

$93,018

Wells Fargo & Company

Financials

$2,584

$61,859

American International Group

Financials

$2,003

$15,924

Cisco Systems

Information Technology

$1,835

$32,899

Wal-Mart Stores

Consumer Staples

$1,775

$42,596

American Express Company

Financials

$1,632

$105,855

Philip Morris International

Consumer Staples

$1,498

$25,840

The Coca-Cola Company

Consumer Staples

$1,250

$39,804

The Goldman Sachs Group

Financials

$1,228

$42,158

The Home Depot

Consumer Discretionary

$1,216

$22,327

JPMorgan Chase & Co

Financials

$1,175

$49,141

Intel Corporation

Information Technology

$1,122

$24,827

DIRECTV

Consumer Discretionary

$1,009

$20,266

Pfizer

Healthcare

$1,004

$14,564

News Corporation

Consumer Discretionary

$973

$28,633

Top 20


$55,398

$935,487

S&P 500


$103,722

$2,917,536

Top 20 % of S&P 500


53.41%

32.06%

About S&P Dow Jones Indices

S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies, Inc., is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500â and the Dow Jones Industrial AverageSM, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of institutional and retail investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide range of assets classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.

Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"), a subsidiary of The McGraw-Hill Companies, Inc. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").  These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.

SOURCE S&P Dow Jones Indices

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.