Warren Buffett is someone who actively encourages companies to buy back their shares if the conditions are right.
He once said that when the shares of outstanding companies with strong financial positions are selling below their intrinsic value, no other action can benefit shareholders as share repurchases can.
On that note, let’s look at three Straits Times Index (SGX: ^STI) components picked at random that have repurchased their shares thus far during the week.
SATS Ltd (SGX: S58)
SATS provides food solutions and gateway services solutions, mainly to the aviation industry.
On 11, 12, 13 and 14 June 2018, the firm bought back a total of 1,413,400 shares at a price range of between S$4.97 and S$5.07 per share. The total cost came up to around S$7.1 million.
SATS closed at S$5.02 per share on Thursday. This translates to a price-to-earnings (PE) ratio of 21 and a dividend yield of 3.6%.
Venture Corporation Ltd (SGX: V03)
Founded in 1984 and headquartered in Singapore, Venture is a global electronics services provider that can support design, manufacturing, and e-fulfilment for high-mix, high-value, and sophisticated products.
On 11, 12, 13 and 14 June, Venture repurchased 89,000 shares at a price range of between S$20.30 and S$20.65 apiece. The total cost was close to S$1.8 million.
Shares in Venture ended at S$20.11 apiece on Thursday, giving a PE ratio of 14.2 and a dividend yield of 3%.
Keppel Corporation Limited (SGX: BN4)
Keppel Corp has four business divisions, namely, Offshore & Marine (O&M), Property, Infrastructure and Investments. The O&M division is one of the world’s largest oil rig builders.
On 14 June, the conglomerate bought back 391,000 shares ranging from S$7.22 to S$7.29 per share, translating to a cost of around S$2.8 million.
Keppel Corp shares last changed hands at S$7.24 apiece on Thursday. This gives a PE ratio of 45 and a dividend yield of 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 SATS Ltd. Motley Fool Singapore contributor Sudhan P owns shares in SATS Ltd.