3 Stocks With Major Buyback Power: AI & Auto in Focus

Core Insights - Three companies are significantly increasing their share buyback capacities, indicating management confidence in future returns, particularly in the tech sector with a focus on AI [1][15]. MongoDB - MongoDB has expanded its share buyback program to a total of $1 billion, which represents approximately 5.9% of its market capitalization as of June 13 [2][3]. - The company reported earnings that exceeded expectations, leading to a 13% increase in share price the day after the announcement, following a previous 27% drop post-earnings in March [4][3]. - Despite a strong subscription growth of 22% last quarter, analysts found the full fiscal year outlook disappointing, and the company is still working to gain traction in AI applications [5]. Autoliv - Autoliv announced a $2.5 billion share repurchase program, equating to around 30% of its market capitalization as of June 13, with the program set to last through the end of 2029 [7][6]. - The company has averaged buyback spending of approximately $82 million per quarter since 2022, which would need to increase by nearly 70% to utilize the full capacity over the next 18 quarters [8]. - Autoliv also raised its dividend by 21%, with an upcoming quarterly dividend of $0.85 per share, indicating a commitment to shareholder returns [9]. DocuSign - DocuSign has added $1 billion to its share buyback authorization, bringing the total to $1.4 billion, which is about 9.4% of its market capitalization as of June 13 [12][10]. - The company has spent $700 million on repurchases over the last 12 months, significantly higher than the average annual spending of around $300 million from 2020 to 2023 [12]. - Despite a 19% drop in shares following its latest earnings report, the stock has risen approximately 44% over the past year, reflecting management's confidence in the business outlook and upcoming AI features [13][14].