In this article, we discuss 5 companies that are buying back stock. If you want to see more companies that are buying back stock, the risk/reward, and methodology of this list, go directly to 15 Companies That Are Buying Back Their Stock.
5. Exxon Mobil Corporation (NYSE:XOM)
Q3 2022 Buybacks (Million): $4,494
Number of Hedge Fund Holders: 75
Exxon Mobil Corporation (NYSE:XOM) returned a lot of capital back to shareholders in Q3 thanks to higher oil and gas prices given the Russia Ukraine war. For the period, the oil and gas leader repurchased $4.49 billion of its stock and paid total dividends of $15.17 billion. In terms of the future, analysts see Exxon Mobil Corporation (NYSE:XOM) earning $13.81 per share in 2022, $11.21 per share in 2023 and $9.86 per share in 2024.
75 hedge funds in our database owned shares of Exxon Mobil Corporation (NYSE:XOM) at the end of the third quarter.
4. Microsoft Corporation (NASDAQ:MSFT)
Q3 2022 Buybacks (Million): $5,573
Number of Hedge Fund Holders: 269
Microsoft Corporation (NASDAQ:MSFT) is the most widely held stock among the elite funds we track with 269 hedge funds holding shares at the end of Q3. With share buybacks of $5.57 billion in Q3, software maker Microsoft Corporation (NASDAQ:MSFT) ranks #4 in terms of stocks among S&P 500 components in the period. Given the repurchases in the third quarter, Microsoft Corporation (NASDAQ:MSFT) has bought back over $172.13 billion worth of its own shares in the last 10 years.
3. Meta Platforms, Inc. (NASDAQ:META)
Q3 2022 Buybacks (Million): $7,365
Number of Hedge Fund Holders: 177
Although the social media leader is spending a lot of capital on building the metaverse, Meta Platforms, Inc. (NASDAQ:META) is also buying back a lot of stock. In the third quarter, Meta Platforms, Inc. (NASDAQ:META) ranked #3 among all S&P 500 components with stock buybacks of $7.37 billion in the time frame.
ClearBridge Investments commented on Meta Platforms, Inc. (NASDAQ:META) in a Q3 2022 investor letter,
We initiated a new position in Meta Platforms, Inc. (NASDAQ:META), in the communication services sector, which operates the Facebook and Instagram social media platforms and is a leading digital advertising provider. We have been carefully watching the company over the last few quarters and believe headwinds from lower monetizing in Facebook and Instagram Reels and pressures from consumer privacy measures are poised to lessen. We believe the company has begun to fully acclimate to this new environment, will achieve greater effectiveness in Reels monetization and find ways to adapt to new privacy standards which will rebound advertising efficiency. Combined with a greater focus on cost control, we believe these initiatives will help contribute to further margin expansion and leave the company well-positioned moving forward.
2. Alphabet Inc. (NASDAQ:GOOG)
Q3 2022 Buybacks (Million): $15,392
Number of Hedge Fund Holders: 156
Considering the tech leader doesn’t pay a dividend, stock buybacks have been the only way Alphabet Inc. (NASDAQ:GOOG) has returned capital back to shareholders. Given Alphabet Inc. (NASDAQ:GOOG) remains one of the most profitable companies in the world, the company ranks among the top S&P 500 components in terms of stock buybacks. In Q3, Alphabet Inc. (NASDAQ:GOOG) bought back $15.39 billion worth of its stock, bringing its ten year buyback total to $163.10 billion.
1. Apple Inc. (NASDAQ:AAPL)
Q3 2022 Buybacks (Million): $24,736
Number of Hedge Fund Holders: 140
With stock buybacks of $24.74 billion in the third quarter, Apple Inc. (NASDAQ:AAPL) ranks #1 in terms of our list of companies that are buying back stock. Given its massive buybacks, Apple Inc. (NASDAQ:AAPL) stock has performed better than some other big tech companies in 2022 although shares are still down 27.01% year to date. If Apple Inc. (NASDAQ:AAPL) can keep innovating and keep making new high margin products that customers want, the company could potentially buy a lot more of its stock in the future.
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