Guzman Share Repurchase Report - October 2017
Guzman & Company’s Investment Banking team released its Share Repurchase Update for October 2017
Summary: The leaves may have been falling in October, but share buyback authorizations were on the rise. Months that reside in the midst of earnings reporting generally experience an uptick in authorizations and the first month of Q4 was no different. Despite not releasing earnings in October, Wal-Mart (WMT) drove volume with a $20BN announcement (44% of all volume authorized in Oct.). The $20BN WMT authorization has a target spend period of two years, which is roughly in line with their recent repurchase activity having spent ~$19BN in the past eight quarters. All eyes remain on tax reform, which if passed, would likely be a boon for buyback activity due to repatriation (proposed 12% rate) and potentially greater retained earnings on a lower corporate rate.