From Nasdaq: 2024-06-20 12:00:00

Stock buybacks by S&P 500 companies surged in the first quarter of 2024, increasing 9.9% year over year. The top 20 companies, including Apple, Alphabet, Meta Platforms, NVIDIA, and Wells Fargo, accounted for a significant portion. The Information Technology sector led with Apple alone announcing a $110 billion share repurchase.

In total, 352 companies repurchased shares worth at least $5 million in the quarter, with the Information Technology and Finance sectors leading the way. Meta Platforms, Google, and NVIDIA also made significant buybacks. The Finance sector saw a 46.5% increase in buybacks, with Wells Fargo spending $6.0 billion in the quarter.

Stock buybacks have become popular due to strong earnings, with companies using cash to buy back their shares from the market. This surge in buybacks could lead to higher earnings per share and potentially boost stock prices. Share buybacks have become a key way for companies to return cash to shareholders and signal that management believes the stock is undervalued.

To capitalize on the share buyback trend, investors can consider the Invesco BuyBack Achievers ETF (PKW). This ETF tracks companies that have reduced shares outstanding by 5% or more in the past 12 months. With a focus on consumer discretionary and financial sectors, PKW offers exposure to this strategy while providing diversification across 203 stocks.



Read more at Nasdaq: S&P 500 Firms Boost Stock Buybacks in Q1: ETF to Tap