RB Global Increases Stock Buyback Authorization To $1 Billion
On September 15, RB Global (NYSE:RBA) announced it is increasing its stock buyback authorization from $500 million to $1 billion. The company has already repurchased over 5 million shares at an average price of around $93.22 since the program began in March. Alongside this move, management also raised its quarterly dividend by two cents on July 21. The decision follows a second-quarter report showing gross transaction value (GTV) growth of 11% to $4.7 billion and net income rising 31% year-over-year to $143.6 million. However, organic GTV growth without acquisitions was only 7%, while service revenue grew just 5%. The company also reported a decline in its take rate — the percentage of gross transaction value retained as service revenue — which dropped by 110 basis points. Despite these figures, RB Global raised its full-year GTV guidance to between 9% and 11%, up from previous expectations. However, there remains skepticism among investors: hedge fund ownership has slightly declined while short interest stands at over 10% of the float.
Tickers: $RBA
Topics: buybacks dividend_increase earnings_growth