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Buyback activity dropped significantly last week with only 5 companies announcing their buybacks. The announcement that topped our list was a $500 million buyback by Medical Properties Trust (MPW), representing around 8% of its market cap at announcement. MPW is a healthcare triple net lease REIT that has lost more than half its value since the start of this year. The stock appears cheap trading at a forward Price/AFFO of 7.37 and its dividend yield is 11.16%, which is significantly above its four-year average of 5.68%. We discussed REIT yields in a post titled REIT Insiders Are Prematurely Bullish – A Potential 37% Drop Looms Ahead yesterday. MPW has a market cap of $6.07 billion and an enterprise value of $15.96 billion.
Our focus for this week is the $500 million share buyback announcement by Fair Isaac Corporation (FICO) which represents around 5% of its market cap at announcement. The company has been consistently buying back its shares with around 15% of its outstanding stock bought back since 2018. In the third quarter, the company repurchased 735,000 shares at an average price of $384 per share. At the end of June, FICO had about $119 million remaining on the current authorization and continues to view share repurchases as an attractive use of cash.