Fortuna Advisors Releases Annual Buyback ROI Report: S&P 500 Buyback Volume Reaches New Quarterly and Annual Records in 2022

PONTE VEDRA BEACH, Fla., April 13, 2023 /PRNewswire/ -- Fortuna Advisors today released its 2023 Buyback ROI Report, ranking the top-performing S&P 500 share repurchase programs and detailing how managements created—or destroyed—value by buying back stock over the five years through 2022. Key findings include:

• S&P 500 buyback volume notched new quarterly and annual Records in 2022. The S&P 500's 363 largest repurchasers bought back over $919 billion in stock for the full year and nearly $280 billion in Q1 2022 alone.
• Buyback ROI was the lowest on record for any five-year period since Fortuna began tracking the metric.
• Buyback activity tapered off significantly in Q2 through Q4 as the market declined, reinforcing the notion that companies tend to "buy high," which harms remaining shareholders.
• After three consecutive years at the bottom of our sector ranking, Energy took the top spot with a Buyback ROI of 24%—nearly 14% higher than the next highest sector, Health Care.
• Analysis considers the effect of new buyback taxes.

The buyback report brings into focus how S&P 500 companies and industry sectors delivered "Buyback ROI," the overall value accrued to remaining shareholders from capital allocated to buybacks; and "Buyback Effectiveness," the incremental value created when companies execute buybacks at prices.

"While Buybacks provide an essential positive role in recycling capital to new businesses, what's too often overlooked is how much value is left on the table when companies take a haphazard approach to buying back their stock—and how much shareholders would benefit from a more systematic approach," commented Greg Milano, CEO and founder of Fortuna Advisors.

About Fortuna Advisors

Fortuna Advisors (fortuna-advisors.com) is a strategic advisory firm that helps clients transform their value creation through bold improvements to managerial insights, decisions, and behaviors. Among its services is VIBE, a platform that provides managements with real-time signals to help override natural biases, limited information, and human error to better inform the timing of share repurchases.

SOURCE Fortuna Advisors LLC

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