The season of buybacks continues this week with a total of 38 companies announcing stock buybacks and 10 of those companies announcing buybacks that exceeded 10% of their market cap. We also saw a couple of buyback announcements by insurance companies that exceeded $1 billion but they did not make our list below because the buybacks as a percentage of their market cap were not large. Progressive (PGR) announced a $2.7 billion buyback representing 4.27% of its market cap at announcement and Chubb (CB) reported a $2.5 billion buyback representing 2.89% of its market cap at announcement.
The company that topped our list announced a buyback that intends to retire more than 30% of their shares outstanding over the next three years. Franchise Group (FRG) was created in 2019 through the merger of tax preparation company Liberty Tax Group and Buddy’s Home Furnishings. The company is the owner and operator of franchised and franchisable businesses and has been growing its stable of brands through acquisitions. FRG acquired The Vitamin Shoppe and Sears Outlet in 2019, American Freight (odd name for a mattress and furniture company) in 2020, and Sylvan Learning, Pet Supplies First and Badcock Home Furniture in 2021. It also divested its Liberty Tax business in 2021 for $249 million.