Brown-Forman pulls the buyback lever with shares at a 52-week low

alexeys

Brown-Forman Corporation (NYSE:BF.A) announced on Monday that its board of directors approved a new $400M share repurchase authorization. The buyback program will begin on October 2 and run through October 1, 2024.

Under the repurchase program, Brown-Forman (BF.A) (NYSE:BF.B) can repurchase Class A and Class B common shares for cash in open market purchases, block transactions, purchases made in accordance with SEC rule 10b5-1. The share repurchase program does not obligate the Louisville-based company to repurchase a minimum number of shares of Class A or Class B common stock, and this share repurchase program may be modified, suspended, or terminated by the company at any time without prior notice.

CEO update: "Brown-Forman is appropriately attentive to today's uncertain market conditions while also confident in the long-term potential for our portfolio of brands. We always strive to deliver leading shareholder returns and believe this buyback authorization provides us the necessary flexibility to repurchase our shares when the market presents the right opportunity."

Shares of Brown-Forman (BF.A) are down almost 13% on a year-to-date basis and closed on Monday less than $0.40 from their 52-week low of $57.19.

More on Brown-Forman, Brown-Forman, etc.

• Brown-Forman: Patience Mandated For Dividend Seekers
• Brown-Forman: Expectation Remains High At 31x Forward P/E
• Brown-Forman Corporation (BF.B) Q1 2024 Earnings Call Transcript
• Brown-Forman announces launch of distribution business in Slovakia
• Brown-Forman falls as the Jack Daniel's maker misses estimates

Comments

[Toni Nikkanen]

Wow this stock is out of fashion now.

[arthur_bishop1972]

@Toni Nikkanen Agreed, but that might present a really good opportunity.

I can't remember the last time I saw the price get hammered like this. I'm keeping a close eye on it, but holding off buying shares for the time being.

[gilsmokey980]

The family and management Odesa great job managing the business and cares about shareholder value. Buybacks, special dividends and growth of the regular dividend. Buy shares and read the quarterlies and it’s hard to go wrong here.

[Aggamemnon]

big difference between having a buyback plan in place, and meaning it. historically tho, they do like buying back. keeps the family in power

[arthur_bishop1972]

Looking to start a position in this one shortly.

[thisisit123]

@arthur_bishop1972 Same. Been wanting to add to this stock, but it's been so expensive.

[arthur_bishop1972]

@thisisit123 that's exactly why I've been waiting - for years, actually. With it down in the mid $50s, I'm finding it difficult to resist buying at least a little bit.

[LongTermInvesto]

@arthur_bishop1972 Same here. Have been waiting for years for a "decent" entry point.

Now that we are getting close to it, I am wondering though if there is not a structural change of consumer behaviour starting. Do "young people" drink as much strong alcohol as "older" generations? Or do they drink differently (less in bars / restaurants?) which in turn reduces consumption?

I am not sure but most alcoholic beverage companies (Pernod, Cointreau, Diageo) seem "cheap" on a historical basis (several turns lower PE than their historical averages). If all premier drink companies go through the same phenomena, maybe Mr Market is telling us something?

[Peter Jaworowski]

Thats smart. One of the better run companies in my opinion.