3 Companies That Have Repurchased 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 during the week, as of market open today.

Oversea-Chinese Banking Corp 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 4 and 5 June 2018, the bank bought back a total of 400,000 shares at a price range of between S$12.86 and S$12.72 per share. The total cost came up to around S$5.1 million.

OCBC shares closed at S$12.84 apiece on Thursday. This translates to a price-to-book ratio of 1.4 and a dividend yield of 2.9%.

Q & M Dental Group (Singapore) Limited (SGX: QC7)

Q & M Dental is the largest private dental healthcare group in Singapore.

On 4 and 5 June, the company repurchased a total of 2,554,900 shares at a price range of between S$0.525 and S$0.555 per share. It spent slightly less than S$1.4 million in all.

Q & M Dental closed at S$0.53 per share on Thursday. This gives a trailing price-to-earnings (PE) ratio of 17 and a dividend yield of 2.1%, excluding special dividend.

Silverlake Axis Ltd (SGX: 5CP)

Silverlake is a software solutions provider mainly servicing the financial services sector.

On 5, 6 and 7 June, the firm bought back 6,030,800 shares ranging from S$0.5401 to S$0.5565 apiece, translating to a total cost of around S$3.3 million.

Shares in Silverlake ended Thursday at S$0.56 apiece. This gives a trailing PE ratio of 35 and a dividend yield of 2.1%, excluding special dividend.

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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.