Health insurer Aetna (NYSE:AET) announced yesterday that its board of directors had approved the repurchase of an additional $750 million worth of stock on top of the $505 million still outstanding as of Dec. 31 from its prior repurchase authorization.
There is no timetable for the buyback to happen but rather will occur as market conditions allow.
Companies will often buy back their stock as a way to heighten investor interest and boost shareholder returns. Taking shares off the market can boost the value of the remaining shares as earnings are split among a smaller number of total outstanding shares.
Aetna also announced it was paying its quarterly dividend of $0.20 per share on April 26, to holders of record on April 11.