Fortuna Advisors Releases Annual Buyback ROI Report: S&P 500 Buybacks Reach All-Time High; Tech, Industrials Deliver Top Results

PONTE VEDRA BEACH, Fla., March 30, 2022 /PRNewswire/ -- Fortuna Advisors today released its 2022 Buyback ROI Report, ranking the top-performing S&P 500 share repurchase programs and detailing how managements created—or destroyed—value by buying back stock over the five years through 2021. Key findings include:

• Companies improved their buyback timing, with median Buyback Effectiveness reaching an all-time high since Fortuna began doing this analysis in 2011.
• Fueled by this improved timing and strong stock market performance, companies delivered the highest five-year median Buyback ROI for the since 2014. Advanced Micro Devices topped the chart with an eye-watering Buyback ROI of 136%.
• Technology and Industrials sectors delivered the highest median Buyback ROI, generating 26.1% and 18.9% returns, respectively, for shareholders. Utilities and Energy rounded out the bottom of the sector list, at 5.7% and 1.3% median Buyback ROI, respectively.
• Buyback volume reached new annual and quarterly all-time highs in 2021. The S&P 500's 350 largest repurchasers breached $864 billion for the full year and $265 billion in Q4 2021 alone.

The buyback report brings into focus how S&P 500 companies and industry sectors delivered "Buyback ROI," the overall value accrued to remaining shareholders from capital allocated to buybacks; and "Buyback Effectiveness," the incremental value created when companies execute buybacks at prices.

"While strong market returns over the past few years have buoyed buyback ROI, we caution that corporate treasurers still need to take a studied approach to buying back shares," said Fortuna Advisors CEO Gregory Milano. "This is especially true in the face of current market headwinds, which could make these distributions look worse in time. The purpose of the study is to help management teams understand how disciplined buyback programs can deliver higher shareholder returns for companies and investors."

About Fortuna Advisors
Fortuna Advisors (fortuna-advisors.com) is a strategic advisory firm that helps clients transform their value creation through bold improvements to managerial insights, decisions, and behaviors. Among its services is VIBE, a platform that provides managements with real-time signals to help override natural biases, limited information, and human error to better inform the timing of share repurchases.

SOURCE Fortuna Advisors LLC