Welcome!

Recurring Revenue Authors: Liz McMillan, Yeshim Deniz, Carmen Gonzalez, Elizabeth White, Pat Romanski

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.

@ThingsExpo Stories
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that Keisoku Research Consultant Co. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Keisoku Research Consultant, Co. offers research and consulting in a wide range of civil engineering-related fields from information construction to preservation of cultural properties. For more information, vi...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.