Summary
Bank of America Corporation (BAC) announced on July 23, 2008, that its Board of Directors has authorized a significant share repurchase program. The company plans to buy back up to 75 million shares of its common stock, with an aggregate purchase price not to exceed $3.75 billion. This program is expected to be executed over the next 12 to 18 months through open market or private transactions. This authorization signals management's confidence in the company's financial position and its stock's valuation during a period of market uncertainty. Investors should note that share repurchases can be a signal of returning value to shareholders and can potentially increase earnings per share by reducing the number of outstanding shares.
Key Highlights
- 1Bank of America authorized a share repurchase program for up to 75 million shares of common stock.
- 2The total value of the authorized repurchase is capped at $3.75 billion.
- 3The repurchase plan is expected to be executed over a 12 to 18 month period.
- 4Purchases will be made through open market or private transactions.
- 5This action was announced on July 23, 2008.
- 6The authorization was made by the company's Board of Directors.