share buy backs increasingNEW YORK, July 27 (Reuters) - U.S. companies announced 28 share buybacks totaling $11.5 billion on Thursday, the highest single-day number since September 2001, a research firm said.
Over the past week, 54 buybacks totaling $20.1 billion were announced, the 14th week of the past 15 that new stock buybacks exceeded $10 billion, TrimTabs Investment Research of Santa Rosa, California, said late on Thursday.
"Corporate America is sure not acting as if it sees trouble ahead. Indeed, corporate America is doing what it has always done when stocks sell-off: they start buying," said Charles Biderman, chief executive of TrimTabs, in a statement.
Reuters Pictures
Editors Choice: Best pictures
from the last 24 hours.
View Slideshow
During the past week, stock buybacks and announced cash takeovers of companies totaled $41.2 billion, the firm said.
Since the release of second-quarter results began two weeks ago, stock buybacks have averaged 7.8 per day, exceeding the average of 6.5 per day in the four previous post-earnings periods, TrimTabs said.
"As investors decide to sell first and ask questions later, the smart money is still buying shares hand over fist," the firm said.
So far this year, 807 new stock buybacks valued at $448.1 billion have been announced, the firm said. The size of buybacks relative to a company's market cap has been impressive.
For example, in the past week Hudson City Bancorp Inc.'s (HCBK.O: Quote, Profile , Research) $600 million buyback is equivalent to 9.3 percent of its market cap; International Flavors and Fragrances Inc.'s (IFF.N: Quote, Profile , Research) $630 million buyback amounts to 14 percent of its market cap; Lennox International Inc.'s (LII.N: Quote, Profile , Research) $500 million buyback is equal to 20.4 percent of its market cap and Rohm & Haas Co. (ROH.N: Quote, Profile , Research) $2 billion buyback is equal to 16.3 percent.
The hand-wringing about tough conditions for leveraged buyouts misses the fact that many companies intend to buy up substantial portions of their outstanding shares, TrimTabs said.