Companies buyback shares on the 'belief' that they are undervalued and that future business prospects are good. Obviously, they can be wrong on both counts. In March 2022 DOO did a Dutch Auction and cancelled $250M in shares in one swoop. Having fewer shares provides more 'per share' earnings leverage and is good, if profits actually improve. But with a loss or a declining business, the per share impact of course works the other way. Management does not really do buybacks to 'prop up shares' as most know (or they should know) that market influences will always be larger than the amount of cash they have to buy back shares. With lower earnings P/E will rise but even with reduced guidance P/E is still less than 10X right now. Historical multiples have been 9X to 25X so this is likely why management continues to repurchase shares.
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