- Subscribe
- Premium
- C-Suite
- Insiders
- M&A
- Gurus
- Spinoffs
- Buybacks
- More
Buyback activity edged up last week with 22 companies announcing buybacks compared to 18 companies in each of the prior two weeks. Two of the largest buyback announcements last week included a $1 billion buyback announced by the Bermuda-based insurance company Arch Capital Group Ltd. (ACGL), which represents around 4.5% of its market cap at announcement. Arch Capital has been actively buying its shares and has reduced its outstanding share count by approximately 22 million this year. Centene Corporation (CNC) also boosted its buyback to $2 billion representing around 2.3% of its market cap at announcement.
We decided to pick Titan International (TWI) to take a closer look this week. Titan, a mid-cap company with a market cap of $928 million, announced a $50 million buyback on December 15, 2022, representing around 5% of its market cap at announcement.
Titan International offers a full line of wheels, tires and undercarriage products for agricultural, construction, military, and mining. The company’s tires are designed to reduce soil compaction and prevent vehicles from sinking into soft earth. Its high-profile customers include John Deere, Caterpillar, and Kubota. The company operates through multiple subsidiaries, the most prominent being Titan Tires Corporation and Goodyear Farm Tires. The company is globally diversified but the biggest chunk of its revenue (47%) comes from the United States.
Growth & Financials:
The company is clearly benefiting from a resurgence in commodity prices and an increase in both mining and agricultural activity. After a pandemic-related dip in 2020, Titan’s revenue has increased steadily, rising from $1.32 billion in Q1 2021 to $2.15 billion in Q3 2022. Net income margin also swung from negative territory to 7.5% during the same time period. For the first nine months of 2022, revenue of $1.66 billion was 28.4% above the $1.29 billion reported over the same period last year.