It is the returning of capital not to existing shareholders, but to exiting / selling shareholders.

It increases the ownership percentage of existing shareholders.

It only creates value if its below intrinsic value, and no better use of cash for higher returns.

Buybacks are hard to do. I recently went from a die hard buyback fan to being more cautious. Some companies like $RICK, $TXN and $ZBRA are great at buying back below intrinsic value. Sadly many companies, like one of my favorites $ASML, have shown poor timing/DCA at high prices in the past.