$12 billion remaining in PayPal’s repurchase program
In May, PayPal (PYPL) announced a commitment to return up to 50.0% of its free cash flow to shareholders over the next five years. PayPal’s free cash flow reached $4.4 billion in the third quarter, up sharply from $841.0 million in the third quarter of 2017.
PayPal returned $600.0 million to its shareholders in the third quarter, primarily through its share buyback program. PayPal has $12.0 billion more to spend on its share repurchase program. This program comprises ~$2.0 billion remaining under a previous repurchase authorization at the end of September and $10.0 billion in a fresh repurchase authorization announced in July.
Companies line up generous repurchase programs
At the end of June, eBay had $5.7 billion remaining under its current repurchase program. Facebook boosted its share repurchase program by $9.0 billion in April. Alphabet and Qualcomm are planning to return $8.6 billion and $30.0 billion to their respective shareholders through share repurchases.
PayPal holding nearly $11 billion in cash
PayPal is balancing its capital allocation between returning cash to shareholders and reinvesting in the business to drive more growth. The company’s cash holdings stood at $10.5 billion at the end of the third quarter, up from $6.3 billion at the end of the second quarter.