US firms spend $1.1T on stock buybacks in 2024

US companies boosted their stock buyback plans this year, amidrising profits and excess cash.

According to data from EPFR, publicly traded US companies have so far announced stock buyback plans worth $1.1 trillion this year, topping the $943.4 billion announced until Oct. 15, 2023.

In 2023, US corporates announced share buyback plans worth $1.2 trillion, the highest level on record.

Winston Chua, an EPFR analyst, told MarketWatch that the number of US companies with stock buybacks plans is lower this year compared to 2023, but the value is higher in terms of cash.

Chua attributed this increase to the excess cash held by companies amid better profits, in push for driving stock prices up.

Separately, Goldman Sachs analysts previously cited the increasing stock buyback plans as a key factor behind the market's recent record highs.