Stock buybacks are one of the many actions companies use to attract investors and raise their share price. A board of directors typically approves when a company repurchases its shares in the stock market, decreasing the overall number of outstanding shares. Increasing the overall stack of each shareholder, which is the main reason a company will buy back its share, improves overall shareholder returns and is a positive sign regarding the financial position of a particular company.
The initiation of share buybacks is a solid sign to investors that a company’s management believes its share price is trading at a discounted value. Investors looking for great bandwagon stocks that have begun to approve and implement share buybacks should check out these companies below. They have all seen very good returns over this last year and offer investors a unique buying opportunity at the moment.
Uber Technologies (UBER)
Uber Technologies (NYSE:UBER) is a company that operates through multiple segments, including ground transportation services such as ridesharing, public transit and rentals; a delivery segment that includes meal and grocery delivery services; and also a freight segment that provides shipping carrier capabilities.
Uber has been a substantial bandwagon stock over the prior year because its share price has more than doubled. On Feb. 7, Uber reported earnings for the fourth quarter full year 2023, which stated that total revenue grew by 15% and net income more than doubled compared to the previous year.
A week after its recent earnings release, Uber Technologies announced a share repurchase program authorized by the board of directors of up to $7 billion. Following this press release, Uber’s stock price surged by 15%.
Uber is another bandwagon stock that has continued to impress investors, and after its share repurchase announcement, its stock price is likely to continue to rise.
Stellantis (STLA)
Stellantis (NYSE:STLA) engages in the manufacturing of vehicles such as pickup trucks, sedans, SUVs and luxury cars. Its brands include Chrysler, Dodge, Jeep, Ram, Peugeot, Maserati and Fiat.
On Feb. 15, STLA announced earnings for the fourth quarter full-year results, stating that total sales increased by 6% and net income rose by 11% compared to the previous year. Additionally, it was reported that North America and other international markets saw an increase in total vehicle sales within the same time period. Most notably, the Middle East and Africa segment which saw a 44% increase.
Stellantis announced a share buyback program within its latest earnings report, which may total up to €3.0 billion.
Along with the impressive share buyback initiative, Stellantis still has other positive aspects, including a decent dividend yield, which is 5.75% on an annual basis for one dollar and sixty cents per share paid annually, and the next payout is anticipated in May 2024. Its share price has also risen by over 50% within the last year. These enticing aspects of Stellantis make it a bandwagon company that continues to garner investor attention.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is a media and communication services company focusing on connecting individuals through personal computers and other mobile devices. Its popular applications include Facebook, Instagram, WhatsApp and Facebook Messenger.
Over the past year, Meta’s stock price has been rising, increasing by 175%, primarily due to growing profit, particularly within its digital advertising segment.
On Feb. 1, Meta Platforms announced that it would initiate a dividend payout for investors for the first time, which would be 0.51% for fifty cents per share. And it also announced a $50 billion increase in its share buyback program.
Following Meta’s earnings release for the fourth quarter of 2023, its share price surged by over 20% due to positive financial results, most notably a 24% increase in advertising revenue, which was previously mentioned and is one of its most profitable business segments.
Meta Platforms has investors swarming to buy shares, especially following its last earnings report. A newly instated dividend yield and an upgrade to its share buyback program, makes it a solid choice for bandwagon investors.
As of this writing, Noah Bolton held a LONG position in UBER. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
