Snowflake to redeem $2 billion in shares: Pro Recap
Here’s your Pro Recap of the most important share buyback news from the past week that you might have overlooked on InvestingPro. Start your free 7-day trial now to be the first to hear about this story.
Snowflake declares a $2 billion repurchase, but shares fall as guidance is missed.
On Wednesday, Snowflake (NYSE:SNOW) unveiled a $2 billion stock buyback scheme. On the same day, it posted better-than-expected Q4 results, but its Q1 and full 2024-year product sales forecast fell short of expectations, resulting in a more than 12% drop in share price on Thursday.
Raymond James lowered its price estimate from $180 to $170 to reflect a lower revenue forecast. Meanwhile, Wolfe said the results were “good” but lowered the price estimate to $160 per share by $5.
Chevron increases its goal rate for share repurchases.
Chevron (NYSE:CVX) announced that it will begin buying back stock at a goal pace of $17.5 billion in Q2, up from $15.2 billion in the final three months of last year. It also increased its buyback forecast estimate to between $10 billion and $20 billion per year. The business anticipates high-return output growth, which may help balance a recent drop in crude prices.
Marathon Petroleum, according to Jefferies, can acquire 38% of the market value by 2025.
On Friday, Jefferies upgraded Marathon Petroleum (NYSE:MPC) to “Buy” from “Hold” and increased its price target to $157 from $134, citing the company’s ability to repurchase 38% of its market value through 2025.
Through share buybacks and dividends, the business returned roughly 75% of OCF (pre-WC) to owners in 2022. “Assuming a similar rhythm in 23–25, we see MPC producing $35 billion in total OCF (pre-WC) and repurchasing $23 billion, or 38% of its market cap, through 2025.” (Ex-2). “MPC will be able to keep a cash balance adequately above its minimum benchmark at these amounts,” the company stated.
3 additional share repurchases
Valmont Industries (NYSE: VMI) shares climbed more than 2% on Tuesday after the company approved up to $400 million in share purchases once the present authorization expires, as well as raised its dividend by 9% to $0.60 per share, or $2.40 annualised.
The stock market finished the week up more than 7%.
Jackson Financial (NYSE:JXN) disclosed a $450 million increase to its current share buyback authorization (nearly $90 million remains as of February 22). Furthermore, the payout was increased by 13% to $0.62 per unit of common equity.
Pure Storage (NYSE:PSTG) declared an extra $250 million in share repurchases.
Following the release of the company’s fourth-quarter data on Thursday, shares fell more than 15%. While earnings per share were higher than anticipated and sales were only marginally lower than expected, the company forecast revenue growth in the mid- to high-single digits for 2024, which surprised investors.