One of the best investors in the world, Warren Buffett, is an advocate of companies buying back their shares for the right reasons. And that is, if the firm’s shares are undervalued, and the reinvestment opportunities into the company are not as attractive.
On that note, let’s check out three businesses picked at random that have repurchased their shares so far during the week, as of market open today.
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 functions.
On 9 and 11 October 2018, the company repurchased a total of 549,900 shares at a price range of between S$4.82 and S$4.93 per share. The total cost came up to around S$2.69 million.
Shares in SATS ended Thursday at S$4.85 apiece. This gives a price-to-earnings (PE) ratio of 20 and a dividend yield of 3.7%.
Sembcorp Industries Limited (SGX: U96)
Sembcorp is a conglomerate with three main businesses, namely, utilities, marine and urban development.
On 9 and 11 October, Sembcorp bought back a total of 400,000 shares at a price range of between S$2.87783 and S$2.99575 per share. It spent around S$1.18 million in all.
Sembcorp shares closed at S$2.87 each on Thursday. This translates to a PE ratio of 29 and a dividend yield of 1.4%.
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 11 October, the property outfit repurchased 200,000 shares ranging from S$8.11 to S$8.23 apiece, translating to a cost of around S$1.64 million.
CDL shares last changed hands at S$8.16 apiece on Thursday, giving a price-to-book ratio of 0.7 and a dividend yield of 1%.
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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 and Sembcorp Industries Limited.