Dell Board Authorizes Additional $5 Billion For Stock Repurchase
- Company spent $1.6 billion for share buyback through the first half of the fiscal year
Dell’s board of directors has authorized $5 billion for stock repurchase, an addition to the $2.16 billion remaining from prior authorizations at the end of the company’s second fiscal quarter. The action was taken in the company’s recent Board of Directors meeting.
Dell previously reported the repurchase of $1.1 billion in shares in the second quarter, which it ended with a record high $16.2 billion in cash and investments.
“Our efforts to streamline our operations and reduce costs have resulted in outstanding cash flow from operations, enabling us over the past five years to more than double the percentage of capital we’ve allocated to research and development, capital expenditures and acquisitions while continuing an ongoing stock repurchase program,” said Brian Gladden, Dell chief financial officer. “With this additional commitment from the Board, we have the flexibility to continue making opportunistic share repurchases as a key element of our disciplined capital allocation strategy.”
Size and timing of stock purchases under the program will continue to be based on factors including price and market conditions.
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