MasTec Shares Popped: What You Need to Know (MTZ)

MasTec Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of MasTech (NYSE: MTZ ) jumped 10% for an instant this morning after the infrastructure construction company's board of directors agreed to a share buyback program. Shares settled to a more modest 6% gain later in the day.

So what: The board approved a buyback program that is up to $75 million in shares in the next 12 months. This expands on an existing $75 million buyback program for a total of $150 million in potential shares to be purchased by the company.

Now what: Considering the company's market cap is currently $1.3 billion, the total buyback authorization amounts to more than 10% of the company. That's an awful lot and is a very bullish sign that management thinks the shares are undervalued. I see the company's current 10 P/E ratio and the buybacks as enough for me to be bullish on the company's future.

Interested in more info on MasTec? Add it to your watchlist by clicking here.

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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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