Small-Caps, Big Buybacks: 3 Stocks With Large Buyback Capacity

Core Viewpoint - Small-cap companies, defined as those with market capitalizations between $250 million and$2 billion, are increasingly engaging in share buybacks, which can significantly impact their earnings per share and share prices, despite the smaller scale compared to large-cap companies [1][2]. Group 1: Buyback Announcements - Fresh Del Monte Produce announced a share buyback authorization of $150 million, representing over 11$1.42 billion market capitalization, with no set end date for the program [4][5]. - Axcelis Technologies revealed a buyback authorization of $100 million, bringing its total buyback capacity to$215 million, which is 12% of its $1.8 billion market cap [6][8]. - Fiverr International announced a second$100 million buyback program, equal to just under 11% of its $922 million market capitalization, following the full utilization of its first buyback authorization in 2024 [9][10]. Group 2: Company Performance and Financials - Fresh Del Monte's revenue is heavily driven by bananas, which accounted for 34$48 million in annual share repurchases over the past decade [4][5]. - Axcelis Technologies experienced a 10% revenue drop in 2024, but had previously seen revenue growth of over 23% from 2021 to 2023, with 41% of its revenue in 2024 coming from silicon carbide-based wafers [7][8]. - Fiverr International has seen a 365% increase in revenue since its IPO in 2019, although its annual revenue growth rate has significantly decreased from 77% during the COVID peak to just 8% in 2024 [10].