Even as the stock market keeps hitting new highs, companies have been holding back on share repurchases. S&P 500 firms repurchased $133.1 billion of their own shares in the first three months of the year, down 18 percent from the same period a year earlier, according to S&P Dow Jones Indices.
What's odd about this is that the decline came during a quarter in which the S&P 500 hit 13 new record highs; corporate executives typically boost share repurchases when the market is strong. Buybacks, for example, hit a record in 2007 before plunging in 2009 during the financial crisis.
And it’s not as if they don’t have the assets available for more buybacks. Cash levels have risen to a fresh record high of $1.5 trillion for S&P 500 companies, excluding financials, utilities, and transportation firms, which already keep high reserves, according to S&P Dow Jones Indices.