Today Red Hat announced the creation of a new, $300 million stock buyback program. According to the company, the stock may be purchased either from the public market, or “in privately negotiated transactions.”
The sum and timing of the news come on the end of a prior $300 million buyback program. The company completed the final $179 million of that earlier repurchase tranche in late February. Thus, the new $300 million merely builds on prior purchases of the company’s stock by itself.
The company has repurchased roughly 3% of its outstanding shares over the past year. The new repurchase will roughly double that amount, with the final percentage determined by the market.
Red Hat likes to buy back its stock. Here’s the company in 2010, announced the afore mentioned, now completed $300 million purchase:
The new program replaces the previous $250 million repurchase program, the final $10 million of which was completed this month
In short, the company has now totted up at least $850 million in share repurchases in quick succession, with new programs following the end of prior efforts. Red Hat is currently flat in after-hours trading. The market appears to be yawning in face of this announcement.
After this $300 million is completed, who wants to get we’ll see another effort?
Top Image Credit: Luz Bratcher