Buybacks benefit stock holders by lowering a company's share count and upping profits per share. They can also signal to investors that executives are positive about their organisations' financial future.

 "It's always comforting to have a management team come in and tell you how undervalued they think their shares are," Anne Wickland, a portfolio manager at Easterly Investment Partners, said, per the Journal. "It's a vote of confidence in the longer-term outlook." 

 But recently, Democrats have criticized buybacks, claiming companies should invest in their businesses rather than focusing on share prices, The Hill reported.

 Just last week, Senator Elizabeth Warren criticized Hertz rental car company for providing buybacks to its investors despite increasing rental prices.