Welcome!

SAP HANA Cloud Authors: Dana Gardner, Elizabeth White, Scott Allen, Ed Featherston, Pat Romanski

News Feed Item

S&P 500 Stock Buybacks Decrease in Third Quarter

Company Buyback Activity Erratic in Q3; Mixed Results Seen for Q4

NEW YORK, Dec. 27, 2012 /PRNewswire/ -- S&P Dow Jones Indices announced today that preliminary results show that S&P 500 stock buyback activity decreased 7.2% to $103.7 billion during the third quarter of 2012, a decrease from the $111.7 billion spent on buybacks during the second quarter of the year. Through the third quarter of this year, companies have spent $17.7 billion less on buybacks than through the third quarter of last year.

"Company buyback activity has been erratic over the past three months," says Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "Given the continued uncertainty of the fiscal cliff and the potential impact on spending, companies may have taken a cautious approach to stock buybacks in the fourth quarter.  In the background, however, is some talk of companies needing more shares to meet employee options, with more being exercised near year-end due to the anticipated tax change."

Of significance during the third quarter was Johnson & Johnson's $12.2 billion share repurchases, ranking as the highest expenditure for the quarter. Johnson & Johnson's share repurchases ($12.9 billion) was also ranked the highest during the second quarter. Both periods included the buybacks associated with the Synthes and Express Scripts merger.

Buybacks have become top heavy over the past year, with the top 20 issues accounting for 38.0% of the total buyback expenditure in the third quarter of last year, as compared to 53.4% in the current period. "Still companies are broadly participating, with 258 issues reducing their overall diluted share count (buybacks less issuance), and 192 increasing (in Q3)," adds Silverblatt. "More relevant is that 125 issues reduced their count by at least 1%, while only 23% increased it by at least 1%."

On a sector basis, Silverblatt notes that S&P 500 Health Care issues dominated the quarter with $21.8 billion in buybacks (down from $23.8 billion during the second quarter), with Information Technology second with $18.0 billion in buybacks, compared to $21.6 billion last quarter.  Energy reduced their expenditures to $6.5 billion during the third quarter from $10.7 billion.

For the fourth quarter of 2012, Silverblatt sees mixed results for buybacks, as companies react to the uncertainty over policy, but act to protect their EPS. "At this point, 2013 has a base of buybacks needed to cover stock options, many of which are solidly in the money. The determining factor will be the market and the need for shares.  If the uncertainty clears up, companies will need more shares (and expenditures) to cover options, as well as more for M&A, which is expected to follow a more stable economy." 

Historical S&P 500 buyback data can be found at: www.marketattributes.standardandpoors.com.

 

S&P Dow Jones Indices





S&P 500, $ U.S. BILLIONS





PERIOD

MARKET

AS REPORTED



DIVIDEND &


VALUE

EARNINGS

DIVIDENDS

BUYBACKS

BUYBACK 


$ BILLIONS

$ BILLIONS

$ BILLIONS

$ BILLIONS

YIELD

09/28/2012 Prelim.

$12,881

$189.64

$69.48

$103.72

5.08%

6/30/2012

$12,303

$195.27

$67.31

$111.75

5.35%

3/31/2012

$12,730

$208.15

$64.07

$84.29

5.09%

12/31/2011

$11,385

$186.76

$65.89

$87.59

5.67%

09/30/2011

$10,303

$206.08

$59.20

$118.41

6.14%

6/30/2011

$12,021

$202.44

$59.03

$109.24

4.88%

3/31/2011

$12,068

$195.15

$56.08

$89.84

4.52%

12/31/2010

$11,430

$187.67

$54.85

$86.36

4.42%

09/30/2010

$10,336

$176.80

$51.26

$79.56

4.45%

06/30/2010 

$9,323

$178.00

$50.44

$77.64

4.41%

03/31/2010

$10,560

$157.85

$49.28

$55.26

3.36%

12/31/2009

$9,928

$135.14

$49.04

$47.82

3.36%

09/30/2009

$9,337

$130.37

$47.21

$34.85

3.71%

06/30/2009

$8,045

$118.22

$47.63

$24.20

5.17%

03/31/2009 

$6,928

$65.29

$51.73

$30.78

7.13%

12/31/2008

$7,852

-$202.11

$62.19

$48.12

7.48%

09/30/2008

$10,181

$86.16

$61.44

$89.71

6.73%

06/30/2008

$11,163

$112.15

$61.94

$87.91

6.88%

03/30/2008

$11,511

$135.24

$61.72

$113.90

7.25%

12/31/2007

$12,868

$68.53

$67.09

$141.71

6.49%

09/30/2007

$13,470

$133.66

$61.21

$171.95

5.89%

06/30/2007

$13,350

$194.30

$59.76

$157.76

5.44%

03/31/2007

$12,706

$190.75

$58.53

$117.70

5.35%

12/31/2006

$12,729

$181.65

$61.79

$105.18

5.16%

S&P Dow Jones Indices




S&P 500 20 LARGEST Q3 2012 BUYBACKS, $ MILLIONS



Company

SECTOR

Q3,'12

BUYBACKS




Q3,'12-Q4,'04

Johnson & Johnson

Healthcare

$12,183

$51,512

Exxon Mobil

Energy

$8,000

$20,855

ConocoPhillips

Energy

$5,098

$189,716

Intl Bus. Machines

Information Technology

$3,751

$29,810

AT&T

Telecommunication Services

$3,076

$23,883

Oracle Corporation

Information Technology

$2,986

$93,018

Wells Fargo & Company

Financials

$2,584

$61,859

American International Group

Financials

$2,003

$15,924

Cisco Systems

Information Technology

$1,835

$32,899

Wal-Mart Stores

Consumer Staples

$1,775

$42,596

American Express Company

Financials

$1,632

$105,855

Philip Morris International

Consumer Staples

$1,498

$25,840

The Coca-Cola Company

Consumer Staples

$1,250

$39,804

The Goldman Sachs Group

Financials

$1,228

$42,158

The Home Depot

Consumer Discretionary

$1,216

$22,327

JPMorgan Chase & Co

Financials

$1,175

$49,141

Intel Corporation

Information Technology

$1,122

$24,827

DIRECTV

Consumer Discretionary

$1,009

$20,266

Pfizer

Healthcare

$1,004

$14,564

News Corporation

Consumer Discretionary

$973

$28,633

Top 20


$55,398

$935,487

S&P 500


$103,722

$2,917,536

Top 20 % of S&P 500


53.41%

32.06%

About S&P Dow Jones Indices

S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies, Inc., is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500â and the Dow Jones Industrial AverageSM, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of institutional and retail investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide range of assets classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.

Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"), a subsidiary of The McGraw-Hill Companies, Inc. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").  These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.

SOURCE S&P Dow Jones Indices

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
industrial company for a multi-year contract initially valued at over $4.0 million. In addition to DataV software, Bsquare will also provide comprehensive systems integration, support and maintenance services. DataV leverages advanced data analytics, predictive reasoning, data-driven diagnostics, and automated orchestration of remediation actions in order to improve asset uptime while reducing service and warranty costs.
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...