MENU

These 3 Blue-Chips Have Repurchased Their Shares This Week

Share buybacks can be a sensible thing to do when a company’s shares are undervalued. On that note, let’s look at three companies that are part of the Straits Times Index (SGX: ^STI) that have repurchased their shares thus far during the week, as of market open today.

City Developments Limited (SGX: C09)

City Developments Limited, or CDL for short, is a Singapore-based property and hotel conglomerate with a network covering 100 locations in 28 countries and regions.

On 17, 18 and 19 September 2018, the property outfit bought back a total of 300,000 shares at a price range of between S$8.70 and S$8.94 per share. The total cost came up to around S$2.65 million. CDL embarked on its inaugural share buyback exercise last month.

Shares in CDL closed at S$8.84 each on Thursday. The price gives a price-to-book (PB) ratio of 0.8 and a dividend yield of 0.9%, without any special dividend.

SATS Ltd (SGX: S58)

SATS is a provider of food solutions and gateway services solutions. Under the food solutions business, it provides services such as in-flight catering and institutional catering. Under the gateway services solutions segment, it is involved in ground handling, security services, and baggage handling, among other services.

On 18 September, SATS repurchased 20,000 shares at S$4.87 per share, spending slightly above S$97,500.

SATS shares closed at S$5.10 apiece on Thursday. The firm is going at a price-to-earnings (PE) ratio of 21 and has a dividend yield of 3.5%.

Sembcorp Industries Limited (SGX: U96)

Sembcorp is a conglomerate with three main businesses, namely, utilities, marine and urban development.

On 19 September, Sembcorp bought back 200,000 shares at S$2.9449 apiece, translating to a cost of less than S$589,700.

Earlier this week, the conglomerate announced that it had signed a long-term solar energy deal with Facebook. Under the 20-year contract, Sembcorp will provide locally-sourced renewable power to support the social media giant’s newest data centre in Singapore, as well as its other local operations.

Sembcorp shares last changed hands at S$3.03 on Thursday. This gives a PE ratio of 31 and a dividend yield of 1.3%.

Learn more about share buybacks through a FREE subscription to Take Stock Singapore. Sign up here to The Motley Fool’s investing newsletter that will teach you how to GROW your wealth in the years ahead.

Like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

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 and Facebook. Motley Fool Singapore contributor Sudhan P owns shares in SATS Ltd and Sembcorp Industries Limited.