Retail investors focus on who is buying certain stocks every quarter, as institutional holdings and investors are reported in that same cadence. However, there is a different way to look at buying activity, one that is much more powerful if it meets all the right criteria. This is through insider buying or corporate or management stock buyback programs.
Understanding the importance of stock buybacks, when done right, can lead investors to align with the companies that pose some of the best risk-to-reward setups and upside potential in the market. Today, there are three companies that have been buying back stock aggressively lately, and there are a few reasons why management may be choosing to do so right now, such as high profitability or discounts on fair company valuations.
