I would say that buying shares can be good or bad, but selling shares to raise money is almost always a bad sign in some way. Selling shares means the company does not have access to cheaper capital. Not saying it doesn't ever work out. Look at Tesla they have sold stock to raise money and I don't think longtime shareholders are complaining, but still if they could have gotten debt it would have been preferable and if they could have used retained earnings that would have been more preferable. As far as buying shares, it makes sense when you think the market is pricing your stock below its intrinsic value and you have excess distributable capital. In this instance buying shares increase EPS for existing shareholder, and reduces the owners tax liability (by not paying disributions).