In this article, we discuss 10 stocks that are gaining after announcing share buybacks. If you want to see more stocks in this selection, click These 5 Stocks are Gaining After Announcing Share Buybacks.
According to the Wall Street Journal, companies are intent on engaging in more repurchase activity in 2022 as compared to the last year. JPMorgan research suggests that as of July 26, the share buybacks in 2022 have reached $514 billion, which is greater than the same period last year. However, the second quarter of 2022 has witnessed reduced buyback activity by 8% on a year over year basis. At the beginning of July, S&P Dow Jones Indices forecasted Q2 to be the quarter which sets a buyback record, however, JPMorgan Chase & Co. (NYSE:JPM) and Citigroup Inc. (NYSE:C) announced that they would eliminate repurchase activity in order to boost capital reserves to weather a sticky macro environment.
July has been a happening month as investors closely watch major names including Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA) and The Coca-Cola Company (NYSE:KO) amid their earnings reports. However, in this article our focus would be the stocks that recently announced share buyback programs.
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Our Methodology
We selected stocks that gained after announcing their latest share repurchase programs in the month of July. We have ranked our list according to the hedge fund sentiment around the holdings, which was assessed from Insider Monkey’s Q1 2022 database of 900+ elite hedge funds.
These Stocks are Gaining After Announcing Share Buybacks
10. ProPhase Labs, Inc. (NASDAQ:PRPH)
Number of Hedge Fund Holders: 2
ProPhase Labs, Inc. (NASDAQ:PRPH) is a New York-based company that engages in the research and development of over the counter consumer healthcare products and dietary supplements in the United States, operating via two segments – Diagnostic Services and Consumer Products. On July 26, ProPhase Labs, Inc. (NASDAQ:PRPH) stock gained 9.09% after the firm announced its plan to repurchase up to $6 million of its common shares. The share buyback program will be effective for six months after its Q2 earnings release on August 12. The company reiterated that all its segments are doing well and driving positive results. ProPhase Labs, Inc. (NASDAQ:PRPH) aims to begin animal studies immediately for Linebacker-1 (LB-1) as a possible cancer co-therapy, which will then be followed by human clinical studies.
Dawson James analyst Jason Kolbert on July 21 downgraded ProPhase Labs, Inc. (NASDAQ:PRPH) to Sell from Neutral after the company announced a license agreement with Global BioLife for the Linebacker portfolio of two patented small molecule PIM kinase inhibitors. The news that ProPhase Labs, Inc. (NASDAQ:PRPH) now wants to venture into the biotech space and develop oncology drugs “adds to our skepticism” and his downgrade also factors in the gain in the stock price, the analyst told investors.
According to Insider Monkey’s data, 2 hedge funds were bullish on ProPhase Labs, Inc. (NASDAQ:PRPH) at the end of Q1 2022, with collective stakes worth $1.68 million. Jim Simons’ Renaissance Technologies is the leading shareholder of the company, followed by Ken Griffin’s Citadel Investment Group.
Like Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA), and The Coca-Cola Company (NYSE:KO), ProPhase Labs, Inc. (NASDAQ:PRPH) offers promising prospects to investors.
9. RBB Bancorp (NASDAQ:RBB)
Number of Hedge Fund Holders: 3
RBB Bancorp (NASDAQ:RBB) was founded in 2008 and is headquartered in Los Angeles, California. It is the bank holding company for Royal Business Bank that offers various banking products and services to Asian-American communities. On July 25, RBB Bancorp (NASDAQ:RBB) posted a Q2 GAAP EPS of $0.80, beating estimates by $0.06. Revenue for the period came in at $40.5 million, up 18.3% on a year over year basis, outperforming Street consensus by $2.93 million.
On July 21, the company declared a quarterly dividend of $0.14 per share, in line with previous. The dividend is distributable on August 12, to shareholders of record on August 1. The company delivers a 2.49% dividend yield as of July 26. RBB Bancorp (NASDAQ:RBB) also announced a share repurchase program of up to 500,000 shares, which comprises about 2.63% of its outstanding stock. On July 26, the stock gained 3.36% after the company revealed its buyback update.
Among the hedge funds tracked by Insider Monkey, 3 funds were bullish on RBB Bancorp (NASDAQ:RBB) at the conclusion of the first quarter of 2022, with collective stakes worth $3.2 million, compared to 7 funds in the earlier quarter, holding stakes in the company valued at $4.3 million. Matthew Lindenbaum’s Basswood Capital held the biggest position in the company, comprising 91,544 shares worth $2.15 million.
8. Capital Bancorp, Inc. (NASDAQ:CBNK)
Number of Hedge Fund Holders: 6
Capital Bancorp, Inc. (NASDAQ:CBNK) is a Maryland-based bank holding company for Capital Bank, which offers financial products and services to not-for-profit associations and enterprises in the United States. Capital Bancorp, Inc. (NASDAQ:CBNK) reported its Q2 results on July 20, posting earnings per share of $0.80, topping analysts’ estimates by $0.19. The revenue of $43.76 million climbed 6.8% year over year, outperforming market consensus by $0.51 million.
Capital Bancorp, Inc. (NASDAQ:CBNK) declared on July 25 a $0.06 per share monthly dividend, a 3.4% increase from its prior dividend. The dividend is payable on August 24, to shareholders of record on August 8. The company’s board authorized a repurchase of up to $10 million, or about 3.1% of the 14 million outstanding shares. The repurchase program will expire on December 31, 2023. The stock gained 4.21% on July 26.
According to Insider Monkey’s data, 6 hedge funds reported owning stakes in Capital Bancorp, Inc. (NASDAQ:CBNK) at the end of Q1 2022, collectively worth $7.3 million, compared to 7 in the prior quarter worth $8.20 million.
7. Shore Bancshares, Inc. (NASDAQ:SHBI)
Number of Hedge Fund Holders: 17
Shore Bancshares, Inc. (NASDAQ:SHBI) was founded in 1876 and is headquartered in Easton, Maryland. It is a bank holding company for the Shore United Bank that specializes in commercial and consumer banking. On July 6, Shore Bancshares, Inc. (NASDAQ:SHBI) announced that it is ready to commence a share repurchase program of worth up to $5.0 million. The buyback program will expire on March 31, 2023. The stock gained 0.73% on July 26.
Among the hedge funds tracked by Insider Monkey, Shore Bancshares, Inc. (NASDAQ:SHBI) was part of 17 hedge fund portfolios at the end of Q1 2022, with combined stakes worth $52.3 million, up from 13 funds in the earlier quarter, holding stakes in the company valued at $63.8 million. Phil Stone’s Fourthstone LLC featured as the leading stakeholder of the company, with 1.4 million shares worth about $30 million.
6. PJT Partners Inc. (NYSE:PJT)
Number of Hedge Fund Holders: 19
PJT Partners Inc. (NYSE:PJT) is a New York-based investment bank that specializes in strategic and capital markets advisory, restructuring and special situations, and shareholder advisory services. The stock gained 4% on July 26 after it posted Q2 results that exceeded Wall Street consensus estimates. The Q2 adjusted EPS of $0.88 exceeded the $0.83 consensus, and the revenue of $233 million surpassed the $223.7 million market expectations. Additionally, PJT Partners Inc. (NYSE:PJT) plans to repurchase up to 20,000 of its shares on August 2, 2022.
On July 8, Piper Sandler analyst Jeffrey Harte reiterated an Overweight rating on PJT Partners Inc. (NYSE:PJT) and lowered the firm’s price target on the shares to $84 from $86. The analyst observed that merger and acquisitions activity ended Q2 on a “soft note”.
According to Insider Monkey’s database, 19 hedge funds were bullish on PJT Partners Inc. (NYSE:PJT) at the end March 2022, compared to 21 funds in the prior quarter. The collective stakes held by the hedge funds in Q1 2022 amounted to $119 million. Israel Englander’s Millennium Management held the leading position in the company, comprising 632,466 shares worth about $40 million.
In addition to Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA), and The Coca-Cola Company (NYSE:KO), elite hedge funds are monitoring PJT Partners Inc. (NYSE:PJT).
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Disclosure: None. These 10 Stocks are Gaining After Announcing Share Buybacks is originally published on Insider Monkey.
