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3 Companies That Bought Back Their Shares Last Week

Warren Buffett is someone who strongly encourages companies to buy back their shares if the conditions are right. In his 1984 Letter to Shareholders, he opined:

“When companies with outstanding businesses and comfortable financial positions find their shares selling far below intrinsic value in the marketplace, no alternative action can benefit shareholders as surely as repurchases.”

On that note, let’s take a look at three companies picked at random that repurchased their shares last week.

1. Singapore Post Limited (SGX: S08)

Postal and logistics services provider, Singapore Post, is no stranger to Singaporeans. With a history stretching back 150 years, it currently operates three business segments – Postal, Logistics and eCommerce.

On 2 October 2017, the company bought back 200,000 shares at a price of S$1.25 per share. It spent around S$250,300 for the repurchase.

Singapore Post’s shares closed at S$1.245 on Friday. This translates to a trailing price-to-earnings (PE) ratio of around 200 and a dividend yield of 2%.

2. Oversea-Chinese Banking Corporation Limited(SGX: O39)

Oversea-Chinese Banking Corporation, or OCBC for short, is the longest established local bank and is the second largest financial services group in Southeast Asia by assets.

On 2 and 3 October, OCBC repurchased 400,000 shares at a price range of between S$11.18 and S$11.24 apiece. The total cost was close to S$4.5 million.

Shares of OCBC closed at $11.37 on Friday, giving a price-to-book ratio of 1.3 and a dividend yield of 3.2%.

3. 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 4, 5 and 6 October, SIA Engineering repurchased 906,800 shares ranging from S$3.15 to S$3.35 per share. This amounted to around S$2.9 million.

Shares of SIA Engineering ended Friday at S$3.19. The company traded at a PE ratio of 21 and had 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 doesn’t own shares in any companies mentioned.