share repurchases

What’s the expected return on buybacks (a theoretical view)

Realized return of buybacks When we think about returns on buyback programs, we normally look back and estimate the realized return of holding the company’s stock. For example, company X has the following characteristics: Stock price (beginning of period) → Pb=$100 Stock price (end of period) → Pe=$150 Dividends → D=$10 Buybacks: 1 share repurchased …

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How is VWAP calculated?

When equity brokers pitch their share repurchase capabilities to corporations, they never fail to mention their ability to outperform VWAP. When asked how they outperform so consistently, the answers tend to be non-answers: “we have proprietary algorithms” “our traders are top notch” “we can see the flow”. They forget to mention that in many cases …

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