Berkshire (BRK-A) Raises Price Limit on Buybacks, Hopes to Return Even More Value
Tweet
Share
E-mail
Get Alerts BRK-A Hot Sheet
Up)Join SI Premium – FREE
Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) are higher on the session following a news release earlier that the company was boosting the price limit on stock repurchases.
In September, Berkshire made the then-unthinkable announcement that it would commence a share repurchase program. At the time, the price it was willing to pay was set at "no higher than a 10% premium over the then-current book value of the shares." Berkshire made the move on expectation that, "repurchases will enhance the per-share intrinsic value of Berkshire shares, benefiting shareholders who retain their interest."
Today, Berkshire's Board of Directors raised the price limit for repurchases to 120 percent of book value, a 10 percent increase from the prior amount.
With its prior announcement, Berkshire set a floor of $20 billion of cash and equivalents before the firm wouldn't perform any more buybacks. It's assumed that that floor still exists.
Class A shares are up 1.6 percent today.
In September, Berkshire made the then-unthinkable announcement that it would commence a share repurchase program. At the time, the price it was willing to pay was set at "no higher than a 10% premium over the then-current book value of the shares." Berkshire made the move on expectation that, "repurchases will enhance the per-share intrinsic value of Berkshire shares, benefiting shareholders who retain their interest."
Today, Berkshire's Board of Directors raised the price limit for repurchases to 120 percent of book value, a 10 percent increase from the prior amount.
With its prior announcement, Berkshire set a floor of $20 billion of cash and equivalents before the firm wouldn't perform any more buybacks. It's assumed that that floor still exists.
Class A shares are up 1.6 percent today.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Bristol-Myers Squibb (BMY) stock slips despite earnings beat
- Grainger (GWW) Raises Quarterly Dividend 10.2% to $2.05; Approves Repurchase of up to 5M Shares
- Merck (MRK) hikes outlook for 2024 as Q1 print beats analyst estimates
Create E-mail Alert Related Categories
Corporate News, Hot Buybacks, Hot Corp. News, Stock Buybacks, Trader TalkRelated Entities
Warren Buffett, Stock BuybackSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
