- Charter Communications (CHTR) has managed to keep up with Apple’s year-to-date performance.
- Furious buybacks since 2016 have helped keep the stock bullish.
- Strong upside potential and a parabolic structure are also driving CHTR’s surprising growth.
Charter Communications, Inc. (NASDAQ:CHTR) is giving Apple (NASDAQ:AAPL) a run for its money. The telecommunications company is up by around 65% year-to-date, on par with Apple’s 2019 growth. Charter’s ascent is impressive considering that Apple has managed to outperform its FAANG peers.
Thus, CHTR’s monumental ascent prompted us to look into the stock and uncover the drivers of growth. Here are three reasons why Charter has managed to keep up with the iPhone maker in terms of stock performance.
1. Charter Communications’ Relentless Company Buybacks
One of the primary reasons why CHTR has been on a tear is because the company has been fiercely retiring its shares through buybacks. In the third-quarter, the telecoms firm spent $2.767 billion on stock buybacks.
That’s just the tip of the iceberg. The company has been retiring shares since September 2016.
The company’s vigorous stock buyback program has been instrumental in CHTR’s ascent. | Source: Yahoo!
Since September of 2016, we’ve repurchased 21% of Charter’s equity at an average price of $330 per share.
As of September 2019, that number has climbed to an impressive 23%.
Charter’s buyback summary since 2016. | Source: Twitter
So far, the company has given no indication that it plans to halt its aggressive buybacks anytime soon. This is positive news for long-term investors. A management team that spends billions in retiring shares should help give CHTR a long-term rosy outlook.