US Companies Hooked on Buybacks

The volume of buybacks in S&P 500 stocks reached $237 billion in the first quarter of 2024, marking the third-largest figure in history.

This represents a 10% increase compared to the same period last year and an 8% increase compared to the fourth quarter of 2023. This growth is largely driven by the 20 largest companies in the S&P 500, which account for 51% of all buybacks.

It is expected that the total volume of stock buybacks in 2024 will exceed $1 trillion for the first time.

Buybacks involve a company purchasing its own shares from the market. Such activities drive up stock prices.