DAL Buybacks
I'm trying to get smarter on this phenomenon - buying one's stock back, using excess cash (or borrowing it), to prop up the stock price and boost EPS. Having poured billions of our resources into buybacks, why isn't the stock higher? When I compare DAL to some major indices over 5 years we've been buying stock back, we underperform significantly. Why? Are buybacks justified with this performance?
5-yr performance of DAL is +39% (nearly identical to GOL at 38%)
S&P 500 is +46%
Dow Jones +53%
Nasdaq +77%
Interestingly, UAL is up almost 91% and LUV is up 85%. FDX is up only 7% and AAL is down 31% over the same time period.
We are beating the FTSE 100 and 250, so at least we're not as toxic as Brexit?!