Share Buybacks Surge as Companies Signal Confidence Amid Volatile Markets

The first quarter of 2025 has seen a surge in share buybacks across Europe, with companies leveraging their balance sheets to signal confidence or adjust capital structures. Between April 21–25 alone, firms like FONDUL PROPRIETATEA S.A., ASML Holding N.V., Heineken Holding N.V., and Hemnet Group AB executed notable repurchases, each reflecting distinct strategic priorities.

FONDUL PROPRIETATEA S.A.: Aggressive Buybacks, But at a Discount

Romania’s FONDUL PROPRIETATEA S.A. (FP) led the charge, repurchasing 4.78 million shares over four days at an average price of just 0.38 RON (roughly $0.03 USD). This represents less than 5% of its 250.8 million-share buyback authorization, which remains largely unspent. The ultra-low price underscores the stock’s depressed valuation—FP’s shares have traded below 0.50 RON since 2023, despite being part of a privatization fund with stakes in utilities and infrastructure.

While the buybacks may aim to stabilize the stock, the sheer scale of remaining repurchases suggests FP is in for a prolonged effort. Investors might question whether this reflects undervaluation or a need to offset weak fundamentals. The company’s simultaneous repurchase of GDRs (Global Depositary Receipts) on London’s markets, albeit in smaller volumes, hints at a dual-listing strategy to attract international investors.

ASML Holding N.V.: Tech’s Cash Machine Stays the Course

ASML, the Dutch semiconductor equipment giant, spent €49.1 million on 85,289 shares between April 22–25, averaging €571.60 per share. This is a fraction of its €2.5 billion buyback program announced in November 2022, but it underscores ASML’s financial strength. With free cash flow of €5.3 billion in 2024, the company can afford to be patient.

The buybacks come amid a mixed outlook for semiconductors: ASML’s exposure to AI-driven chip demand is bullish, but global trade tensions and overcapacity risks linger. The stock’s 12-month volatility—currently around 20%—suggests investors are pricing in uncertainty, yet ASML’s willingness to repurchase at these levels signals confidence in its long-term prospects.

Heineken: Steady Hands in a Volatile Beverage Market

Heineken’s €1.89 million buyback in early April accounts for just 0.4% of its €750 million program, which it launched in February 2025. The brewer’s deliberate pace contrasts with ASML’s urgency, reflecting its preference for sustained capital returns. With €43.3 million spent to date, Heineken has repurchased 640,402 shares at an average of €67.40—a price near its 52-week low of €63.50—suggesting it’s capitalizing on dips.

The move aligns with its strategy to balance buybacks and dividends. With a dividend yield of 2.1% and a payout ratio of 45%, Heineken is maintaining investor appeal without overextending. Its weekly buyback disclosures, published every Monday, also serve as a tool to stabilize sentiment in choppy markets.

Hemnet: Completing a Chapter, But What’s Next?

Swedish real estate platform Hemnet concluded its SEK 450 million buyback program on April 25, repurchasing 1.28 million shares since April 2024. The final tranche of 13,000 shares in late April brought total repurchases to 99.96% of the authorized amount, with the stock held at an average of 377 SEK—a slight discount to its April 25 closing price of 382 SEK.

The completion leaves Hemnet with 1.51 million own shares, or 1.6% of its outstanding shares, which could be retired or held as a buffer for future acquisitions. This contrasts with its peers in the European real estate tech sector, many of which are still expanding their buyback programs.

Conclusion: Buybacks as a Barometer of Confidence

The April 21–25 buyback data reveals two clear themes. First, companies with strong cash flows (like ASML) are using buybacks to return capital while retaining flexibility, whereas those with weaker valuations (like FP) are aggressively targeting undervalued shares. Second, the completion of Hemnet’s program highlights the maturity of buyback strategies in certain sectors, where firms are moving beyond short-term repurchases to longer-term capital management.

For investors, the data suggests caution in extrapolating buybacks as a guarantee of value. FONDUL’s ultra-low prices, for instance, may reflect structural issues rather than a bargain. Conversely, ASML’s disciplined approach and Hemnet’s closure of its program signal disciplined capital allocation. The next test will be whether these buybacks translate into sustained earnings growth or merely temporary boosts to EPS.

As European markets grapple with geopolitical and macroeconomic uncertainty, buybacks are proving to be both a lifeline and a litmus test—companies that pair them with robust fundamentals are likely to outperform in the long run.