CrowdStrike (NASDAQ: CRWD), Chewy (NYSE: CHWY), and Nutanix (NASDAQ: NTNX) are three stocks that the market has turned on. All three are down 30% from their highs, with investors weighing a variety of factors. However, amid the carnage, these companies are working to inspire confidence by announcing new buyback programs.
Buyback announcements often signal that a company believes the market is undervaluing its stock. This is because when a company buys its own stock, it is essentially investing in itself. While companies can also use buybacks to lower outstanding share counts and add tailwinds to per-share metrics, this isn’t the most likely motivation when shares are down significantly. Taking a deeper look at CrowdStrike, Chewy, and Nutanix’s buyback announcements helps to decipher how confident these companies are going forward.
