What Are Stock Buybacks and Why They Matter for Your Portfolio

Stock buybacks are back in focus, and for investors, they can be a powerful sign of confidence that often supports share prices and boosts returns.

Stock Buybacks Are Back – Here’s Why That Matters The corporate buyback window just reopened - and that’s a big deal for the stock market.

When companies do a stock buyback, they’re basically buying back their own shares from the public market. Think of it as a company investing in itself. This reduces the number of shares available, often pushing the stock price higher and boosting key financial stats like earnings per share (EPS).

Why Buybacks Matter to You

• More Demand, Less Supply: When a company buys back its stock, it creates more demand in the market and reduces the supply of shares. That can help support or lift the stock price.
• Confidence Signal: Buybacks show that company leadership believes in the business. If they’re willing to use cash to buy shares, they probably think the stock is a good deal.
• Boosted Metrics: With fewer shares out there, earnings get spread across a smaller base — making the company’s performance look stronger on paper.

Why This Moment Matters Now that earnings season is winding down, companies are allowed to buy back their stock again. This "blackout period" (when buybacks are paused) is over — and that opens the door for mega-cap tech and big banks to jump back in. Is this perfect timing for the bulls to continue momentum?

What History Tells Us

• Companies that announce big buybacks have historically outperformed.
• One study found an average 20.8% gain in the year after a buyback announcement.
• Stocks tend to do twice as well when buybacks are active vs. when they’re not.

Bottom Line Buybacks are back - quietly but powerfully. In a market full of noise from tariffs, trade wars, real wars, the Fed, and recession fears, this behind-the-scenes buying from corporate giants could be one of the biggest tailwinds for stocks in the months ahead. Trade decisively!

Reminder: Be sure to check out our Live Portfolio page! It is a live look inside our closed trades.

Also take a look at our GAR Capital Trading Journal - complimentary to our Annual, Lifetime, and Masterclass members.