Summary
Centene Corporation (CNC) announced on October 21, 2019, that its Board of Directors authorized an additional stock repurchase program of up to $500 million of its common stock. This new authorization provides flexibility, allowing the company to utilize proceeds from divestitures related to the WellCare acquisition for share repurchases or debt reduction, at its discretion. This strategic move signals management's confidence in the company's financial position and its commitment to returning value to shareholders.
Key Highlights
- 1Centene's Board authorized an additional $500 million stock repurchase program.
- 2Repurchase program can be funded by proceeds from divestitures related to the WellCare acquisition.
- 3The company has the option to use divestiture proceeds for either share repurchases or debt paydown.
- 4This $500 million authorization is incremental to the existing repurchase program, which still has 6.7 million shares remaining.
- 5The timing and number of shares repurchased will be determined by market conditions and the stock price at the time of divestitures.
- 6This action demonstrates management's confidence and focus on shareholder value.
Frequently Asked Questions
The newly authorized stock repurchase program is for up to $500 million of Centene's common stock.
The company may use some or all of the proceeds from divestitures related to the WellCare acquisition to fund these repurchases.
No, this $500 million authorization is in addition to the previously approved stock repurchase program, which had 6.7 million shares remaining as of the filing date.
Centene has the flexibility to either repurchase shares or pay down debt with the proceeds from the WellCare-related divestitures.