Share repurchase


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Share repurchase

Program by which a corporation buys back its own shares in the open market. It is usually done when shares are undervalued. Since repurchase reduces the number of shares outstanding and thus increases earnings per share, it tends to elevate the market value of the remaining shares held by stockholders.

Buyback

The act of a publicly-traded company buying its own stock, sometimes at a price well above fair market value. Buyback is not intended to stop trade on its stock. Rather, it is an attempt either to reduce the supply of shares in the market (with the hope of driving up the share price) or to prevent a real or suspected hostile takeover. If a company becomes its own majority or plurality shareholder, it either makes a hostile takeover impossible or more expensive for the acquiring company. A buyback may occur all at once or gradually over time. See also: Antitakeover measure, Self-tender offer.
References in periodicals archive ?
This new share repurchase programme will replace the existing USD50m share repurchase programme that was authorised on 9 December 2015, which will expire in accordance with its terms on 31 December 2016.
Effective immediately, the share repurchase authorisation allows the firm to impact the repurchases from time to time through a combination of open market repurchases, privately negotiated transactions, accelerated share repurchase transactions, and/or other derivative transactions.
The company expects to fund the share repurchase program through cash and short-term investments.
The five most commonly cited reasons to set up a share repurchase program are:
This new share repurchase plan reportedly replaces the company's prior USD1bn share repurchase authorisation, of which USD782m was outstanding after USD118m of share repurchases to date in the Q3 2014.
All common shares repurchased under the accelerated share repurchase programme will be retired, the company said.
These high levels of free cash flow allow us to build shareholder value in three ways: the advancement of our internal modem product development in support of product launch targeted for the fall of 2007, acquisitions of technology, and significant share repurchases.
A steady share repurchase program consisting of open market purchases throughout the year is anticipated.
Since the inception of the PBG's share repurchase program, the Company has repurchased approximately 117 million shares.
Under the accelerated share repurchase program, Dollar Tree will immediately pay $100 million and receive approximately 2.
Orbital intends to use the net proceeds from the sale of the notes, together with cash on hand, to repurchase its outstanding 9% senior notes due 2011 and to fund the above-described share repurchase.
Polaris enters into an accelerated share repurchase agreement with Goldman, Sachs & Co.