S&P 500 Firms Boost Stock Buybacks in Q1: ETF to Tap
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 20 2024
0mins
Should l Buy WFC?
Source: Business Insider
- Stock Buybacks in 2024: Stock buybacks by S&P 500 companies increased 9.9% year over year and 8.1% sequentially in the first quarter of 2024, with tech giants like Apple, Google-parent Alphabet, Meta Platforms, NVIDIA, and Wells Fargo leading the way.
- Buyback Boosters: The Information Technology sector dominated buybacks, with Apple announcing the largest-ever share repurchase worth $110 billion, while Meta Platforms, Google, and NVIDIA also made significant buybacks.
- Finance Sector's Increase: The Finance sector saw a 46.5% increase in buybacks to $43.1 billion, with Wells Fargo spending $6.0 billion during the quarter.
- Reasons for Buybacks: Stock buybacks increase when earnings rise, boosting earnings per share and driving stock prices higher. It signals that management believes the stock is undervalued, attracting more buyers.
- PKW ETF Focus: Investors can consider the Invesco BuyBack Achievers ETF (PKW) to ride the share buyback trend, which tracks companies reducing shares outstanding by 5% or more in the trailing 12 months, with a focus on consumer discretionary and financial sectors.
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Analyst Views on WFC
Wall Street analysts forecast WFC stock price to rise
17 Analyst Rating
10 Buy
6 Hold
1 Sell
Moderate Buy
Current: 86.290
Low
74.00
Averages
98.66
High
113.00
Current: 86.290
Low
74.00
Averages
98.66
High
113.00
About WFC
Wells Fargo & Company is a financial services company. The Company provides a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, to individuals, businesses and institutions. The Company operates through four segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. The Company provides consumer financial products and services, including checking and savings accounts, credit and debit cards, and auto, residential mortgage, and small business lending. In addition, the Company offers financial planning, private banking, investment management, and fiduciary services. It also provides financial solutions to businesses through products and services including traditional commercial loans and lines of credit, letters of credit, asset-based lending and leasing, trade financing, treasury management, and investment banking services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- ETF Unit Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are buying and selling “units” that can be created or destroyed based on investor demand, impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify those experiencing notable inflows (new units created) or outflows (old units destroyed), allowing for an assessment of their impact on underlying assets and shifts in market sentiment.
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- Tariff Adjustments: President Trump plans to roll back some tariffs on steel and aluminum, causing shares of U.S. steelmakers like Nucor and Cleveland-Cliffs to drop in premarket trading, reflecting market sensitivity to policy changes and their potential impact on related industries.
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