3 Mid-Cap to Mega-Cap Stocks Have Announced Significant Buybacks

Key Points

• Three stocks, from mid-cap to mega cap, have announced substantial increases to their buyback capacity.
• In total, these three stocks now have over $12 billion in buyback capacity.
• These stocks find themselves in the financial services, semiconductor, and ground transportation industries.

Several stocks just announced share buyback authorizations, indicating their intentions to return substantial capital to shareholders. These names range in size from mid-cap to large-cap to one of the largest publicly traded companies in the world. Below are the details on these three names.

All metrics use data as of the Apr. 16 close unless otherwise indicated.

SEIC: Buyback Spending Has Potential to Hit Another Yearly Record

First up is SEI Investments NASDAQ: SEIC. On Mar. 18, the financial services company announced an increase to its previous share buyback authorization of $500 million. Overall, the company now has $556 million in buyback capacity. The company's market cap is about $9 billion. This buyback ability is significant, making up roughly 6.1% of its total value.

In 2024, SEI spent a record $500 million on buybacks. Using the full $556 million in buyback capacity in 2025 would break the firm's record for buyback spending for the second year in a row. The company’s use of dividends adds to its strategy to return capital. The stock has a solid indicated dividend yield of approximately 1.4%.

AVGO: Chip King Looks to Spend Billions on Buybacks and Fast

Next up is the world’s second-largest stock in the semiconductor industry, Broadcom NASDAQ: AVGO. On Apr. 7, this chip stock announced a new share repurchase program that allows it to buy back up to $10 billion of its common stock. This represents approximately 1.2% of the firm’s total market capitalization. Although this is a fairly small buyback announcement compared to the size of the firm, the speed at which Broadcom may use it provides added value.

This buyback authorization ends on Dec. 31, 2025. This means that Broadcom likely intends to utilize the full capacity in just eight months. This expected pace contrasts significantly with many buyback authorizations, which can last indefinitely. In these cases, companies may authorize a larger buyback program relative to their size, but take several years to utilize it.

All else being equal, a faster buyback pace is more beneficial to shareholders. It means capital is being returned sooner, and investors can reinvest the proceeds to generate returns rather than having to wait.

Broadcom may have seen an opportunity to buy back its shares at a discount, as its stock has dropped by around 24% in 2025. Post-2021, Broadcom has ramped up its use of share buybacks considerably. Over the past three fiscal years, Broadcom has spent an average of around $6.7 billion per year through its share repurchase programs. This figure does not include shares repurchased for tax withholdings on the vesting of equity awards.

If Broadcom uses the full $10 billion, it would significantly accelerate its buyback pace compared to recent years. The fall in Broadcom's stock price adds weight to the idea that the management team sees an opportunity. Broadcom also announced a substantial 11% increase to its dividend in December 2024. The stock has an indicated dividend yield of around 1.3%, on par with that of the S&P 500 Index.

XPO: Big Time Buyback Authorization, but Spending Pace Could Go Either Way

Last is XPO NYSE: XPO. This ground transportation stock announced a share repurchase authorization worth $750 million on Mar. 27. This replaces, rather than adds to, the company’s previous share repurchase program. With a market cap of around $11 billion, this buyback program equates to a very significant portion of the firm’s overall value at around 6.8%.

However, over the last several years, XPO has slowly bought back shares. From 2020 to 2024, it spent an average of just $69 million a year on buybacks. The company ended its last buyback program with a capacity of $503 million left. This shows it was not in a hurry to use its buyback authorization. This suggests that the company may continue to do the same with this new program despite increasing its capacity.

However, the firm has spent huge amounts on repurchases in the past. It spent a whopping $1.4 billion in 2019 and nearly $600 million in 2018. The new buyback authorization indicates that it could be gearing up to do so again. It may not have seen its $503 million capacity as enough compared to the repurchases it wants to make in 2025.

Together, these three stocks raised their buyback capacity by more than $12 billion, reflecting their commitment to returning capital to shareholders.