Putting Chevron’s $75 Billion Stock Buyback in Context

Chevron’s resolution this week to purchase again $75 billion of its shares and hike its dividend units the stage for one of many largest company buybacks in latest historical past.

It got here after a giant 12 months for buybacks, which firms use to spice up earnings per share (EPS). Within the third quarter alone, S&P 500 firms purchased again a document $210.8 billion, as some 319 corporations reported no less than $5 billion of repurchases. Greater than 20% of S&P 500 firms lifted their EPS by 4% in 2022 utilizing this technique, based on analysis from S&P World, the very best share because the fourth quarter of 2019.

Chevron introduced its program on Wednesday, two days earlier than reporting earnings that missed Wall Avenue estimates. Shares of Chevron (CVX) have been down 4% Friday on the information.

S&P 500 Firms with the Largest Inventory Buybacks

Beneath are 5 firms which were among the many most aggressive in shopping for again their inventory final 12 months:

Apple Inc. (AAPL)

Apple has been a longtime market chief in share repurchases, shopping for again $409.1 billion over the previous 5 years—2.6 instances greater than every other firm. Apple repurchased $24.7 billion of its shares within the third quarter of 2022, up from $20.4 billion within the earlier 12 months and outpacing every other firm within the S&P 500.

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Alphabet Inc. (GOOGL)

Alphabet, the dad or mum firm of Google, purchased again $15.3 billion of shares within the third quarter after reporting internet earnings of $13.9 billion. The tech agency repurchased $150 billion over the previous 5 years.

Meta Platforms Inc. (META)

As its shares plunged final 12 months, Meta Platforms purchased $6.6 billion of its shares within the third quarter. The dad or mum firm of Fb purchased again $100 million over the previous 5 years, trailing solely Apple and Alphabet.

Microsoft Corp. (MSFT)

Microsoft purchased again $5.5 billion within the third quarter, reaping the advantages of excessive income progress related to the corporate’s cloud companies enterprise. Over the previous 5 years, the corporate purchased again $170 billion of shares, outpacing each firm within the S&P 500 apart from Apple.

ExxonMobil Corp. (XOM)

Power large ExxonMobil earned good-looking earnings final 12 months, reaping the advantages of upper oil costs. Inventory buybacks throughout the vitality sector rose from a 12 months earlier, with ExxonMobil within the lead. The corporate purchased again $4.5 billion within the third quarter, turning into one of many high 5 firms by repurchase quantity final 12 months.