Read the full article on Traders' Insight.
Excerpt:
We’re in the midst of the fourth quarter earnings season and already we’re seeing a cautionary set up for 2023 as corporations find ways to cut back. Higher inflation and interest rates have helped raise revenues for some, but are cutting into the bottom-line. For some that has meant widespread layoffs and restructuring plans. As companies strive to conserve cash, we see three other corporate events that will be top of mind this year:
1. Buybacks
While a record number of authorizations in 2021 set 2022 up for a record number of repurchases, that tapered off in the back half of the year as companies attempted to conserve cash in the face of economic uncertainty. In 2022, only 20 S&P 500 companies announced buyback plans vs. the 5-year average of 161 (not including tender offers or open-ended plans). Buyback end dates for 2023 total 17 thus far (through January 31) vs. the 5-year average of 87, and only Costco Wholesale has announced a repurchase plan this year (with an end date of Jan 31, 2027).
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