The S&P/ASX 300 Index (ASX: XKO) is down 0.8% in late morning trade today, but this ASX 300 stock is bucking that selling trend and pushing higher.
The outperforming stock in question is employee services and fleet solutions provider Smartgroup Corporation Ltd (ASX: SIQ).
Smartgroup shares closed yesterday trading for $11.45. At the time of writing, shares are changing hands for $11.51 apiece, up 0.5%.
Today's outperformance is par for the course for Smartgroup shares of late. Shares are now up 49.5% in 12 months, racing ahead of the 2.4% one-year gains posted by the benchmark index.
Atop those strong capital gains, the ASX 300 stock also trades on a fully-franked 4.6% trailing dividend yield.
Now, here's why Smartgroup shares look to be gaining in today's sinking market.
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ASX 300 stock jumps on $20 million share buyback
Investors are bidding up Smartgroup shares today after the company announced it was launching a $20 million share buyback of up to $20 million.
The ASX 300 stock is engaging in the buyback after agreeing to sell the majority of its self‑funded fleet portfolio. That decision followed Smartgroup's fleet-funding partnership with Volkswagen Financial Services Australia in 2025.
The company noted:
The board has determined that returning this excess capital to shareholders via an on‑market share buy‑back is an efficient use of capital and is consistent with Smartgroup's disciplined capital management framework.
The buyback announcement coincided with Smartgroup's annual general meeting (AGM), held today in Sydney.
What did management say at the Smartgroup AGM?
"2025 was a year of disciplined execution and continued strategic momentum for Smartgroup," chairman John Prendiville said.
"Amid evolving market dynamics, the Group delivered strong financial performance, deepened customer relationships, and accelerated progress on its strategic roadmap," he added.
Taking a look at the ASX 300 stock's performance over the past 12 years, since its initial listing, Prendiville said:
Since listing in 2014, Smartgroup has delivered strong and consistent returns for shareholders through both capital growth and fully franked dividends.
Over this period, we have returned approximately $649 million to shareholders in fully franked dividends, while our market capitalisation has grown from approximately $160 million at listing to around $1.5 billion as at 15 May 2026.
Prendiville then handed over the podium to Smartgroup CEO Scott Wharton.
Drilling into the past few years of revenue, earnings, and profit growth, Wharton said:
Over the 2023 to 2025 period, revenue has grown by 31%, driven by continued investment in digital capabilities to enhance our customer proposition, alongside strengthened account‑management and business development capabilities.
Over the same period, EBITDA increased by 35%, reflecting the scalability of our operating model. NPATA increased by 27%, demonstrating our ability to deliver profitable growth while continuing to invest to support long‑term value creation.
