3 Stocks Kicking Off the New Year with Major Buyback Plans

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Samiat

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Nov 12, 2024
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GE Vernova (NYSE: GEV)

  • Major Announcement: GE Vernova approved a $6 billion share buyback, equivalent to nearly 7% of its market capitalization.
  • Performance: Shares soared 152% in 2024 after its spin-off from General Electric.
  • Dividend Initiation: Declared its first dividend of $0.25 per share, with a 0.3% yield—a promising sign for income-focused investors.
  • Growth Outlook: Recently signed contracts to power data centers with natural gas turbines, sparking optimism among investors.
  • Analyst Sentiment: Wall Street analysts are bullish, consistently raising price targets following positive news and earnings.

Match Group (NASDAQ: MTCH)

  • Buyback Announcement: Authorized a $1.5 billion share buyback, equal to 18% of its market cap.
  • Dividend News: Introduced a $0.19 per share quarterly dividend, translating to a 2.3% annualized yield.
  • Performance: Shares dropped 10% in 2024, contrasting with GE Vernova's growth.
  • Turnaround Strategy: Leveraging AI to improve user experiences on dating apps, including chatbot features to enhance matches and facilitate real-life connections.
  • Revenue Challenges: Revenue grew less than 2% last quarter, but the company aims for a turnaround through innovation.

Olin (NYSE: OLN)

  • Buyback Program: Expanded share buyback authorization to $2 billion, covering 52% of its $3.9 billion market capitalization.
  • Performance: Stock delivered a -38% return in 2024, reflecting challenges in the basic materials sector.
  • Investor Day Updates:
    • Focused on cost reductions: Targeting $250 million in structural savings by 2028.
    • Shareholder Returns: Committed to returning over 50% of operating cash flow to investors through 2029.
  • Product Line: Produces chlorine, epoxy, and Winchester ammunition, catering to stable markets with 3%-6% annual growth projections.
  • Analyst Projections: Citigroup and Barclays forecast 33% upside potential, signaling strong value at current levels.