As we approach the end of earnings season, buyback announcement also slowed down with 15 new announcements during the last week. Two tiny microcap companies topped the list with buybacks representing 45% and 15.2% of their market caps at announcement. Both are unfortunately money losing companies and one of them, Exela Technologies (XELA), also happens to have a highly leveraged balance sheet.
Gaming company Electronic Arts Inc. (EA) announced a massive $2.6 billion buyback representing more than 7% of its market cap at announcement. The company received a pandemic related boost and we are yet to see signs of a significant slowdown in either revenue or earnings now that the world appears to be getting back to normal. Revenue growth is expected to moderate to 15.59% in fiscal 2023 ending March 2023 and the company is expected to earn $7.19 a share, giving it a forward P/E of 18.78.