These 4 Mid-Caps Just Announced Big Buyback Plans

Core Insights - Several mid-cap companies have initiated significant share buyback programs, indicating strong confidence in their future and commitment to returning capital to shareholders [1][2][13] Group 1: Post Holdings (POST) - Post has authorized a $500 million share buyback program, representing 8.5% of its market value, which is $5.9 billion [2][13] - The company has already repurchased 8% of its shares over the last three quarters and has historically spent an average of $106 million per quarter on buybacks [2][3] - Post's recent acquisition of 8th Avenue Food & Provisions for $880 million and the subsequent sale of its pasta business for $375 million will enhance its capacity for share repurchases [2][3] Group 2: Bread Financial (BFH) - Bread Financial has announced a $200 million share buyback program, equating to 6.5% of its market capitalization of approximately $3.1 billion [6][13] - The company has spent an average of $25 million per quarter on buybacks over the past three years, alongside $11 million on dividends, with a current dividend yield of 1.3% [6][5] Group 3: BellRing Brands (BRBR) - BellRing Brands has authorized a $400 million share buyback program, which is 8% of its market capitalization of around $5 billion [9][13] - The company has increased its buyback spending significantly, repurchasing $256 million worth of stock in the last two quarters, which is 43% of its total buyback history [10][9] - BellRing's Premier Protein brand holds a 25% market share in the U.S. and has seen a 19% sales growth compared to the previous year [8][9] Group 4: Lithia Motors (LAD) - Lithia Motors has announced a $750 million increase in its share buyback authorization, bringing its total buyback capacity to $1.08 billion, which is 12.3% of its market capitalization of approximately $8.75 billion [11][12] - The company has already reduced its share count by around 6.1% in 2025 and has a moderate dividend yield of about 0.7% [12][11] - Jefferies Financial Group has set a price target of $400 for Lithia, indicating a potential upside of approximately 17% [12][11] Group 5: Combined Buyback Capacity - The combined buyback capacity of Post, Bread Financial, BellRing Brands, and Lithia Motors totals $2.1 billion, reflecting a strong commitment to returning capital to shareholders [13]