stock repurchase

Stock Buybacks:
A Warning Sign for Smart Investors

Last year saw a surge in stock repurchases -- companies like ExxonMobil, Walmart and Microsoft bought back shares at record levels. Buybacks can be seen as a cash giveaway to investors, and they boost earnings per share. But there's a strong reason to be wary of companies that do buybacks.

What's Behind the Share Buyback Binge?

Companies that have piled up cash over the past few years are finding one good use for it: Repurchasing their own shares. January alone saw $57 billion in buybacks, compared with $357 billion for all of 2010. While buybacks don't add value, they do give investors more options.

Hewlett-Packard OKs $10 Billion Share Buyback

Hewlett-Packard shares jumped nearly 2.76%, or $1.05, to $39.05 in premarket trading after the No. 1 PC maker announced Monday that its board of directors had authorized an additional $10 billion for share repurchases. HP expects to buy back at least $3 billion worth of shares in its fiscal fourth quarter.