Are Share Repurchases On The Horizon?

This year, analysts are expecting the trend to continue, as companies look for ways to use up excess cash in a low-interest rate environment.

Why Buyback?

January marked a massive selloff for share markets, making it an opportune time for companies to start repurchasing shares. With earnings season only just beginning, many companies are unable to initiate buybacks at the moment, as they are in a blackout period.

However, some are expecting to see several firms up their repurchases once fourth quarter results have been released and they are permitted to return to the market.

Related Link: General Motors Makes A Slew Of Announcements At Auto Conference

Who's Buying?

Last week, General Motors COmpany GM announced that it was planning to increase its stock buyback program to $9 billion, an 80 percent rise.

Medtronic PLC MDT similarly revealed plans to spend $5 billion on share repurchases over the next two years last Wednesday.

Last year, American Airlines Group Inc AAL spent over $1.5 billion on buybacks, and many believe the company will continue increasing its buyback authorization through the first and second quarter of 2016.

What Does It Mean?

While January's selloff makes for a great opportunity for U.S. firms to conduct buybacks while their shares are trading lower, some analysts say whether they rush to buy will be a telling sign of things to come. For those who believe that January's slump is the result of investors' fear, low-priced shares are a bargain. However, if the sell off is seen as an indicator of upcoming economic trouble, many companies are likely cut down on repurchases.