Stock buybacks the latest trend in Brazilian markets

Having taken the S&P 500 by storm last year, stock buybacks have become more common than ever in Brazil. We explain why, and where the trend goes from here

stock buybacks
Floor of B3, São Paulo’s stock exchange. Photo: Zanone Fraissat/Folhapress

Since the 1980s, stock buybacks have become a phenomenon in the U.S., with S&P 500 companies setting a new record for share repurchases last year. Indeed, they are now making their way into the Brazilian stock market as well, with 108 such deals in 2021 alone — 44 percent more than in the previous year. 

Stock buybacks occur when a company repurchases its own shares from the stock market. Sometimes they can benefit shareholders and can be an efficient way to return capital.

In Brazil, companies must file for buyback authorization from securities regulators, before having 18 months to complete the...

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