U.S. buybacks seen at record highs ahead of earnings reports

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U.S. buybacks seen at record highs ahead of earnings reports
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U.S. stock buybacks appear to be hitting new records as companies head into quarterly earnings season, even as some investors worry about the growing threat of inflation, a potential recession and stagnant share prices.

"I don't think these are one-offs. I think you're going to see more companies perhaps slow down their buyback process and be more like they were in early 2020, thinking, 'how much cash do I need on my balance sheet to weather this particular storm if in fact we go into a recession'," predicted Art Hogan, chief market strategist at National Securities in New York.

EPFR, Informa Financial Intelligence analyst Winston Chua, who tracks new buyback announcements, said that - at least for now - companies appear to be aggressively repurchasing their shares. New buybacks announced in March reached about $74 billion, compared to $54 billion in March 2021, Chua said.

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