In 1982, the U.S. Securities and Exchange Commission (SEC) adopted Rule 10b-18, providing companies with a safe harbor for qualifying share repurchases. Since then, publicly traded companies have been repurchasing their own shares in order to consolidate ownership and boost earnings per share (EPS). But for some firms, the timing of their stock buybacks indicates that management views the current share price as undervalued.
This year, companies are on a record-setting pace.
According to Bloomberg, during the first four months of 2026, S&P 500 companies announced plans to repurchase $665 billion worth of shares, the highest total ever recorded in that same timeframe. And, based on historical rates, analysts now forecast authorized repurchases to reach $1.55 trillion for the full year.
Participating in that shopping spree are three companies that have recently announced a collective $24.5 billion in new, replenished, or increased share repurchase plans.
Dollar Tree: $2.5 Billion Buyback Adds Fuel to Turnaround
On July 2, the board of directors for Dollar Tree (NASDAQ: DLTR) replenished its share repurchase authorization to the tune of $2.5 billion.
The board approved the authorization the previous day, and the amount represented approximately 10.7% of the company’s more than 192 million shares outstanding at the time
Although Dollar Tree’s current authorization doesn’t have an expiration date, the company had already been active in the market, repurchasing $500 million of stock in June under its previous authorization.
When the calendar turned to July, shares were down 5.13% year to date (YTD), presenting an opportunity as the stock’s momentum had recently shifted.
Since its YTD low of $86.80 on May 13, DLTR has gained nearly 48% and now trades around 10% lower than its 52-week high of $142.40. The current rally can be partly attributed to July 8 upgrades from Raymond James (Outperform rating) and Goldman Sachs (from Sell to Neutral), as well as upwardly revised full-year guidance, with forecasted EPS increasing to a range of $6.70 to $7.10.
With a low-volatility beta of 0.65, a TradeSmith financial health indicator that has been green for about a month, and more than 97% institutional ownership, the discount retailer’s buyback aligns with Wall Street’s improving sentiment. After posting EPS beats for five consecutive quarters and six out of the last seven, Dollar Tree is expected to report Q2 earnings on Sept. 2.
Morgan Stanley: $20 Billion Buyback Reinforces Earnings Momentum
Ahead of its record-breaking Q2 earnings report on July 15, Morgan Stanley (NYSE: MS) reauthorized a massive $20 billion buyback—good for 5.6% of its shares outstanding—on June 24.
The company’s current multi-year repurchase authorization doesn’t have an expiration date, and shares have ticked up slightly since the most recent buyback.
Q2 marks the second consecutive quarter the investment bank announced all-time high EPS and revenue, with the firm attributing its recent success to a 69% year-over-year jump in equity trading, an increase in investment banking deals and hitting a $10 trillion milestone in total client assets under management, including a record $148 billion in net new assets.
In Q2, the company spent $1.5 billion on its own shares, and since its YTD low on March 12, shares are up nearly 48%. The stock carries a consensus Moderate Buy rating, while current short interest is just 1.12% of the float.
Accenture: $2 Billion Bet That Its Stock Is Undervalued
On June 23, global professional services and consulting firm Accenture (NYSE: ACN) announced a $2 billion increase to its fiscal 2026 share repurchase program that accounts for 2.4% of its shares outstanding.
From management’s perspective, the authorization comes at an opportune time: Shares of ACN are down around 46% YTD, and nearly 53% off of their 52-week high.
That $2 billion repurchase plan was an increase that brought its 2026 authorization to $7.5 billion.
The company has until Aug. 31 to exhaust those funds, with CEO Julie Sweet saying that “Accenture is at the center of AI-driven reinvention, and we do not believe our current share price reflects that position or the strength of our business fundamentals.”
Still, the firm faces an uphill battle in getting its stock near its 52-week high. In Accenture’s Q3, revenue growth slowed to 5.59%, with operating cash flow regressing to a quarter-over-quarter loss of 0.82%.
Meanwhile, the company’s financial health, according to TradeSmith, has been in the red for more than five months. But the stock’s consensus price target suggests around 33% potential upside from current prices. Over the past year, institutional inflows of more than $25 billion (compared to $13.25 billion in outflows) demonstrate that the smart money also sees a buy-low opportunity.
The article "Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks" first appeared on MarketBeat.
