3 Companies That Have Bought Back Their Shares This Week

Warren Buffett is a huge advocate of businesses buying back their shares. He believes that share buybacks can reveal a thing or two about the company’s management.

He once opined:

“What you’d like to do as an investor is hook them up to a machine and run a polygraph to see whether it’s true. Short of a polygraph the best sign of a shareholder-oriented management — assuming its stock is undervalued — is repurchases. A polygraph proxy, that’s what it is.”

On that note, let’s check out three companies picked at random that have repurchased their shares thus far this week.

1. SIA Engineering Company Ltd (SGX: S59)

SIA Engineering provides base and line maintenance of aircraft, among others. It is around 78% owned by our flag carrier, Singapore Airlines Ltd (SGX: C6L).

On 18 September, SIA Engineering repurchased 41,300 shares ranging from S$3.36 to S$3.37 per share, translating to a total cost of around S$139,000.

The shares are going at S$3.44 apiece. This translates to a trailing price-to-earnings (PE) ratio of around 23 and a dividend yield of 3.8%.

2. Duty Free International Ltd (SGX: 5SO)

According to its website, the company is the “largest local duty-free retailing group in Malaysia, with strategic presence at all leading entry and exit points in Peninsular Malaysia, including airports, seaport, downtown, border towns and popular tourist destinations.”

On 18, 19, 20 and 21 September 2017, Duty Free International bought back 1,634,500 shares at a price of between S$0.28 and S$0.285 apiece. The total cost was around S$461,000.

Shares of the firm are going at S$0.285 now, giving a PE ratio of 15 and a dividend yield of around 6%.

3. Singapore Technologies Engineering Ltd (SGX: S63)

Singapore Technologies Engineering Ltd is an integrated defence and engineering group that has capabilities in the aerospace, electronics, land systems and marine sectors.

On 20 and 21 September, the company repurchased 1,337,200 shares at a price ranging from S$3.50 to S$3.52 per share. The total cost was around S$4.7 million.

Shares of the company are now priced at S$3.51, giving a PE ratio of close to 24 and a dividend yield of 4%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P does not own shares in any companies mentioned.