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What To Know About Groupon’s Stock Buyback Program


Apr. 4 2018, Updated 12:57 p.m. ET

Groupon bought back $60 million worth of stock

Stock buybacks are among the ways e-commerce provider Groupon (GRPN) rewards shareholders. Between 2015 and the end of 2017, the company returned $669 million to shareholders through stock buybacks.

In 2017, Groupon repurchased 16.9 million shares for $60 million. Groupon stock gained 54% in 2017, beating the broader market’s rise of 19%, implying that Groupon investors booked some profits from the stock buyback.

Groupon bought back $162.4 million in stock in 2016 and $446.6 million in 2015. Groupon exited 2017 with $135.2 million remaining under its buyback budget.

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eBay repurchased $992 million in stock

eBay (EBAY) and Yelp (YELP) also reward their shareholders through stock buybacks. eBay bought back $992 million in stock in 4Q17, and Yelp bought back $12.6 million in stock in 2017.

Google parent Alphabet (GOOGL) intends to buy back $8.6 billion in stock, beginning this year. IBM (IBM) bought back $0.7 billion in stock in 4Q17, and it has $3.8 billion remaining under its current buyback budget.

Buybacks reduce stock supply

Since buybacks reduce the number of shares available for trading, they can cause stock prices to move higher due to demand for the stock outweighing supply. Companies also repurchase stock to offset dilution resulting from equity awards to employees and the conversion of debt into equity.


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