Financial health
Share repurchases
Buybacks
What it is
The company buys back its own shares on the market and cancels them. The pie is split across fewer slices, so each remaining share represents a bigger stake.
How to read it
Read alongside stock-based compensation: if the company only buys back enough to offset shares granted to employees, the share count doesn't really fall — the buyback funds payroll rather than shareholders.
What it does not tell you
Buying back at the highs destroys value. Shares outstanding year over year tells the truth better than the dollar amount spent.
Other measures — Financial health
Educational content. Polaris is not a registered investment adviser and makes no recommendation.