Q1 2024 Stock Buyback Data: Trend Report
Analysis from VerityData examining Q1 2024 corporate share buyback trends at U.S. companies.
In this article, featuring highlights of a Buyback Trends report from VerityData | InsiderScore, we examine quarterly buyback data and identify market, index, and sector trends related to corporate stock repurchases. Note: This article is an excerpt of an exclusive report for VerityData | InsiderScore customers. Data compiled June 2024.
Q1 2024 Stock Buyback Data: Macro Trends
Buyback execution up incrementally in Q1’24
Buyback volume for U.S. companies in Q1’24 totaled $238.6B, representing a 0.4% sequential increase from the prior quarter and a 4.1% increase from the same quarter a year earlier. Buyback volume staged a recovery with solid growth in both Q3’23 and Q4’23 before flat lining in Q1’24. Volume in Q1’24 was supported by increasing buybacks by mega-cap companies, who are more focused on returning capital to shareholders instead of opportunistically timing the market for retiring shares. Despite the market-wide rise, small-cap stocks decreased buyback volume, evidenced by the Russell 2000, where buybacks dropped -7.1% QoQ. The slow-down Russell 2000 buybacks is likely tied to rising equity valuations as small-caps tend to be more opportunistic.
Buyback participation in Q1’24 in-line with historic average
A total of 1,015 companies reported repurchases for Q1’24 so far, which compares to an average of 1,033 companies per quarter over the last 10 years. The breadth of buybacks has generally been decreasing over the last seven quarters and the last quarter was a material drop of -9.2% compared to Q4’23. The latest drop in breadth contrasts with a slight rise in the dollar volume and indicates repurchases are becoming increasingly top-heavy. As of this report, not all companies have submitted Q1’24 data, particularly those with offset fiscal calendars. Therefore, the final count of companies participating in buybacks for Q1’24 may be only slightly below that of Q4’23.
New and increased buyback plans down QoQ to 279
A total of 151 companies initiated new buyback plans in Q1’24 and another 128 increased existing plans. The combined figure of 279 is well below the Q4’23 count of 329 and is also below the 10-year average of 327 per quarter.
Quarterly Buyback Value of Russell 3000 Companies from Q1 2014 to Q1 2024, illustrating the changes in repurchase values alongside a steady increase in the Russell 3000 Close. Source: VerityData
Q1 2024 Stock Buyback Trends By Index & Sector
| Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | QoQ Change | YoY Change | |
|---|---|---|---|---|---|---|---|
| All U.S. Companies | 229.1 | 196.9 | 212.7 | 237.6 | 238.6 | 0.4 | 4.1 |
| S&P 500 | 199.9 | 163.5 | 176.9 | 203.8 | 204.8 | 0.5 | 2.5 |
| Russell 2000 | 11.5 | 10.5 | 11.3 | 10.2 | 9.5 | -7.1 | -17.6 |
| Technology | 79.4 | 70.4 | 80.0 | 84.6 | 96.5 | 14.0 | 21.6 |
| Financial | 41.1 | 29.4 | 25.3 | 27.0 | 34.8 | 28.7 | -15.5 |
| Consumer Discretionary | 30.5 | 30.3 | 34.4 | 42.7 | 27.9 | -34.7 | -8.6 |
| Healthcare | 19.6 | 13.6 | 16.2 | 14.2 | 20.2 | 42.4 | 3.0 |
| Industrial Goods | 16.5 | 17.4 | 19.7 | 30.5 | 17.6 | -42.4 | 6.6 |
| Energy | 22.2 | 20.8 | 20.4 | 20.4 | 17.0 | -17.0 | -23.7 |
| Consumer Staples | 8.1 | 4.9 | 5.4 | 9.8 | 13.7 | 39.9 | 68.0 |
| Materials | 4.5 | 5.2 | 6.3 | 3.8 | 5.9 | 55.0 | 30.9 |
| Telecommunication | 4.9 | 3.7 | 3.0 | 2.4 | 3.8 | 60.4 | -22.3 |
| Utilities | 1.6 | 0.5 | 0.6 | 1.7 | 0.8 | -53.9 | -49.9 |
| Real Estate | 0.7 | 0.7 | 1.4 | 0.5 | 0.6 | 9.6 | -17.5 |
Source: VerityData
Value of Stock Repurchased by S&P 500 Companies Up 0.5%
Aggregate buyback volume in Q1’24 for the S&P 500 was up slightly from the prior quarter. After a solid jump in Q4’23, growth buybacks for the S&P 500 moderated. Aggregate Q1’24 buyback volume continues to be on par with the average over the prior two years. The chart below details quarterly buyback dollar amounts for the S&P 500 over the past 10 years and plots it against the index’s quarterend value.
Quarterly Buyback Value of S&P 500 Companies from Q1 2014 to Q1 2024, showing fluctuations in repurchase values and a consistent upward trend in the S&P 500 Close. Source: VerityData
Top 10 Corporate Stock Repurchasers for Q1 2024
The largest share buybacks in Q1’24 were Apple (AAPL), Alphabet (GOOGL), Meta Platforms (META), NVIDIA (NVDA), and Wells Fargo (WFC).
- Apple (AAPL) topped all companies marketwide, as usual, with $23.5B in buybacks in Q1’24. It’s the highest amount for AAPL since Q3’22 when they bought back $25.2B.
- Alphabet (GOOGL) repurchased $15.9B in Q1’24, matching the amount it spent in the prior quarter.
- Meta Platforms (META) bought back $14.5B, more than double the prior quarter. It’s also the highest dollar value for META since Q4’21.
- NVIDIA (NVDA) accelerated its buyback spend to $8.0B in Q1’24, the highest ever for the company. The amount is small in comparison to its market-cap at just 0.4%.
- Wells Fargo (WFC) executed its largest buyback in two years by spending $6.0B in Q1’24. WFC bought back more than $6.0B several times before 2020.
- Caterpillar (CAT) upped its buyback pace again Q1’24 to $4.5B. It’s the highest volume ever for CAT. This follows $2.8B in Q4’23 which was also a high at the time.
- The Cigna Group (CI) spent $4.0B in Q1’24 on buybacks, a two-year high for the firm. Most of the shares were retired through an ASR.
- T-Mobile (TMUS) reversed course to increase its buyback pace in Q1’24 to $3.6B. Volume had been declining in the prior two quarters to $2.2B in Q4’23.
- UnitedHealth (UNH) repurchased $3.1B in Q1’24, edging its next biggest buyback of $3.0B in Q2’23.
- Chevron (CVX) bought back $3.0B in shares during Q1’24, placing it 10th market-wide. The amount is down from $3.4B in Q4’23 and the lowest for CVX in nearly two years
[Watch] How to Get Compelling Investment Ideas From Stock Buyback Data
About the Stock Buyback Data
VerityData tracks all open buyback plans that are publicly disclosed by U.S.-listed companies. Quarterly buyback updates are typically included in 10-Qs and 10-Ks, and we capture buying that is part of the publicly announced plan.
Data includes accelerated share repurchases (“ASRs”) and tender offers. Buybacks for the purpose of M&A (exchange offers and tender offers specifically to acquire a company) are excluded. For companies that do not report on a normal calendar basis, we’ve done our best to estimate the most appropriate corresponding calendar period.
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Ali Ragih, CFA, is a Senior Research Analyst at Verity. He’s passionate about diving into investment data, looking for outliers, and interpreting the signals that fuel better investment decisions. He’s been delivering differentiated research and analysis to asset managers for 10+ years.
