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Buyback Leaders

Buyback Leaders

4.06k followers19 symbols Watchlist by Motif Investing

Companies returning cash to shareholders can win the favor of current and potential investors.

Curated by Motif Investing

Background

Amidst an uncertain economic environment over the last few years, US companies accumulated high levels of cash as they cut R&D, capital expenditures, and hiring. With an improved economic outlook there has been increased pressure on firms from shareholders to return that cash to shareholders – either directly through dividends or nominally via stock repurchases.

Buybacks offer companies and shareholders many potential benefits: They provide a flexible approach for management to return surplus funds during times of market weakness, they have instilled a vote of confidence in a company's performance, and they can boost earnings per share by reducing the total number of shares outstanding. Some investors also believe management is also signaling that a company's stock is cheap at current valuations. And buybacks are clearly on the upswing: S&P 500 companies have purchased more than $415 billion of their own stock in the 12 months prior September 2013.

How did we choose these stocks?

We identified US-listed stocks and American Depository Receipts of companies that are engaged in activities relevant to this watchlist's theme. We then filtered out companies that have a share price of less than $1.00 or a market capitalization less than $100 million, and excluded illiquid stocks by screening companies for liquidity i.e. average bid-ask spreads, dollar volume traded etc. Finally the proprietary Motif Optimization Engine determined the constituent stocks. Learn more about how we select our watchlists.

Who made these selections?

Motif is an online brokerage built on thematic portfolios of up to 30 stocks and ETFs. Founded in 2010 by Hardeep Walia, Motif combines complex proprietary algorithms with skilled advisers to develop these thematic portfolios. Learn more about our team.

How are these weighted?

First, we determined each company's percentage of total revenue derived from this watchlist's theme. Second, we applied a pure-play factor to give greater relative weight to companies that derive a higher percentage of their revenue from this theme. Finally, we weighted each company by its market capitalization adjusted for revenue exposure to the theme.

More details on how we build and weight watchlists are available here.

Performance

WatchlistChange today1-month return1-year returnTotal return
Buyback Leaders+0.93%+15.02%-19.07%+10.49%
^GSPC-0.13%-3.50%+11.62%+3460.58%

19 symbols

SymbolCompany nameLast priceChange% changeMarket timeVolumeAvg vol (3-month)Market cap
TXNTexas Instruments Incorporated137.1-1.55-1.12%10:02 am GMT-4486.53k4.41M125.58B
MSMorgan Stanley48.02+0.39+0.82%10:02 am GMT-4952.91k9.93M75.72B
USBU.S. Bancorp35.87+0.28+0.79%10:02 am GMT-4470.23k6.57M54.03B
ETNEaton Corporation plc100.23+0.92+0.93%10:02 am GMT-4139.97k1.64M40.10B
GISGeneral Mills, Inc.58.14+0.15+0.26%10:02 am GMT-41.44M3.34M35.52B
DALDelta Air Lines, Inc.30.75+0.53+1.75%10:02 am GMT-44.29M25.22M19.61B
CHRWC.H. Robinson Worldwide, Inc.103.06+0.50+0.49%10:02 am GMT-4109.82k1.54M13.89B
PKIPerkinElmer, Inc.119.83-0.12-0.10%10:01 am GMT-429.93k911.20k13.40B
HIGThe Hartford Financial Services Group, Inc.36.28+0.44+1.23%10:02 am GMT-4193.72k2.19M13.00B
BROBrown & Brown, Inc.44.595+0.09+0.19%10:02 am GMT-443.12k1.02M12.97B
BENFranklin Resources, Inc.20.19+0.32+1.61%10:02 am GMT-4260.16k3.18M10.00B
NYTThe New York Times Company42.52-0.17-0.40%10:01 am GMT-446.58k1.36M7.06B
RSReliance Steel & Aluminum Co.102.39+1.60+1.59%10:01 am GMT-418.98k362.70k6.53B
HIIHuntington Ingalls Industries, Inc.143.875+0.26+0.18%10:00 am GMT-436.26k400.15k5.83B
ABMABM Industries Incorporated37.69+0.19+0.51%9:59 am GMT-412.91k406.72k2.51B
SPRSpirit AeroSystems Holdings, Inc.19.03+0.02+0.11%10:02 am GMT-4752.28k5.09M2.01B
BBarnes Group Inc.36.595+0.17+0.45%10:02 am GMT-412.93k239.79k1.85B
CATYCathay General Bancorp21.64+0.48+2.27%9:59 am GMT-419.17k340.08k1.72B
NAVINavient Corporation8.02+0.16+2.04%10:02 am GMT-4579.02k3.21M1.56B