Red Hat Announces $300 Million Buyback

Open source software provider Red Hat (NYSE: RHT  ) will be buying back up to $300 million worth of company stock, the board of directors announced Monday.

Having recently completed a $300 million repurchase program, the board will take advantage of various opportunities to buy back additional shares. The final $179 million spent under the previous authorization came after the end of its last quarter (Feb. 28), at an average price of $49.15 per share for a total of 3.6 million shares. The company has repurchased 5.9 million shares over the past 13 months, equivalent to 3% of shares outstanding as of Feb. 28.

"Our management team and board of directors have a strong conviction in our long-term growth prospects and our ability to generate profits and cash flow," Red Hat executive VP and CFO Charlie Peters said. "We believe that stock repurchases demonstrate our commitment to building shareholder value as well as confidence in achieving long-term growth."

The repurchase program will be funded using Red Hat's working capital. As of Feb. 28, the software specialist had cash and investments of approximately $1.3 billion and approximately 193.0 million shares of common stock outstanding. The chart below does not include repurchases after Feb. 28, 2013.

RHT Stock Buybacks Chart

RHT Stock Buybacks data by YCharts.

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2366248, ~/Articles/ArticleHandler.aspx, 10/1/2014 11:02:17 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement