Business application software developer Progress Software (NASDAQ:PRGS) announced yesterday it had adopted a Rule 10b5-1 share repurchase plan to buy back up to $100 million of its stock as part of its previously announced repurchase authorization. At the time, the board of directors had increased the program by $10 million to $360 million.
The SEC adopted Rule10b5-1 to protect executives and companies from charges of insider trading by allowing them to legally buy or sell shares in their company even if they are aware of material non-public information so long as the trade was specifically laid out in a plan before the executive or company became aware of the information.
Progress Software's plan will run from July 1 through Dec. 31 unless it buys back $100 million worth of stock before then. The software specialist previously utilized a Rule 10b5-1 plan to repurchase $250 million of its stock between October 2012 and May 2013.
Progress cautions there is no guarantee as to the exact number of shares that will be repurchased under the plan or the timing of any repurchases.