3 Companies That Have Bought Back Their Shares This Week

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

He once said:

“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 businesses picked at random that have repurchased their shares during the week.

1. 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 20, 21 and 22 February 2018, OCBC repurchased 600,000 shares at a price range of between S$12.85 and S$13.02 apiece. The total cost was slightly below S$7.8 million.

Shares of OCBC closed at $13.37 on Friday, giving a price-to-book ratio of 1.5 and a trailing dividend yield of 2.8%.

2. Singapore Exchange Limited (SGX: S68)

Stock market operator, Singapore Exchange, is Asia’s most international, multi-asset exchange providing listing, trading, clearing, settlement, depository and data services.

On 20 and 21 February, the firm repurchased a total of 210,000 shares at a price range of between S$7.55 and S$7.58, spending around S$1.6 million in all.

SGX closed at S$7.53 on Friday. The company is trading at a trailing price-to-earnings (PE) ratio of 23 and sports a trailing dividend yield of 3.7%.

3. SATS Ltd (SGX: S58)

SATS is mainly involved in airline catering and ground handling services.

On 20, 22 and 23 February, the firm bought back 415,000 shares at a price range of S$5.17 to S$5.20. The total cost was around S$2.2 million.

SATS’ shares ended Friday at S$5.20. The price translates to a trailing PE ratio of around 22 and a trailing dividend yield of 3.3%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange Limited and SATS Ltd. Motley Fool Singapore contributor Sudhan P owns shares in Singapore Exchange Limited and SATS Ltd.