- Subscribe
- Premium
- C-Suite
- Insiders
- M&A
- Gurus
- Spinoffs
- Buybacks
- More
Buyback activity slowed down further last week with 23 companies announcing buybacks compared to 28 companies in the prior week. Alibaba Group Holding Limited (BABA), CVS Health Corporation (CVS) and NetEase (NTSE) were the top companies that announced huge buybacks in dollar terms, announcing $15 billion, $10 billion, and $5 billion buybacks representing around 7.3%, 8% and 11% of their market caps at announcement respectively.
The stock that grabbed my attention this week is Atkore (ATKR). On November 18, 2022, Atkore upsized its repurchase program from $800 million to $1.3 billion representing around 10.5% of its market cap at announcement. The Board also extended the duration of the program through November 30, 2025.
Atkore provides electrical, safety, and infrastructure solutions. It manufactures electrical power systems, conduit, installation accessories, metal framing, mechanical pipe, armored cable and fittings. The company has been performed well both in terms of revenue and earnings growth the last few years and this is reflected in the 500% gain in the stock the last 5 years.
In terms of repurchases, Atkore has been consistently buying back its shares. Over the last two years the company has retired nearly 8% of its outstanding shares. The stock currently trades at an EV/EBITDA of 3.82 and has a forward P/E of 8.26. Considering how cheap the stock looks, the additional buyback announced by the company makes sense.
Atkore reported strong Q4 F22 results. In the fourth quarter, net sales increased 11% year-over-year to $1 billion and adjusted EPS increased 26% to $5.52. This is primarily due to higher selling prices and contributions from recent acquisitions. Both sales and earnings have grown significantly since 2017. For the full year, the company achieved $3.9 billion in revenue and its adjusted EPS grew 66% to $21.55. Adjusted EBITDA for the full year was $1.3 billion compared to $880 million last year.