"Buyback Ratio" or Indicator?

kmiklas

kmiklas

Is there any kind of buyback indicator or index out there which describes the ratio of buybacks to "authentic" stock purchases?

Example: The headline might read, "ABC is up $2 today on bullish interest."

Ooh... PILE IN!!!

What they don't say that this is artificial, as ABC just bought back 1% of their outstanding shares, took them off the market, and locked them into their coffers.

This reduces supply, driving the price up, when they haven't increased revenue; hell, revenue might have actually decreased and this is the reason for the buybacks.

Also the opposite: a measurement of when companies sell from their chest into the market to increase the number of outstanding shares.

Thx, Keith :D
 
Dude, where've you been for the last 8 years?

Next to Fed stimulates, share buybacks are the backbone of the bull market. What do you need an indicator for? Goldman already announced that they will not be buying back this quarter... that should be the only indication you need. The party is over.
 
kmiklas said:
Ooh... PILE IN!!!
this is artificial
Keith :D
More...

Buying is buying.
Who cares if it's normal investors/traders, or insiders doing it. You shouldn't be concerned with getting too technical about it.
This is a trading forum, not an investing forum...no need to truly dissect every angle of its fundamentals and foundation.

Keith 2018, o_O All the best,
 
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When a company repurchases its shares, it increases sales per share. It also increases dividends per share, free cash flow per share, and book value per share. If a company repurchases all of its shares and you're the only one holding out, you effectively own the company. There's nothing artificial: it's a very real effect.

The downside of share repurchases is that, if the stock is overvalued, share buybacks actually dilute current shareholders. Whether the buyback is accretive or dilutive will, on average, determine the direction of the stock price.

But I guess this is a "trading" forum, which means let's carry on buying things "cause the chart told me it's undervalued".
 
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