Summary
CORPAY, INC. (formerly FleetCor Technologies, Inc.) filed this 8-K on December 16, 2016, to provide an update on its previously announced stock repurchase program. The company reaffirmed its commitment to returning capital to shareholders, highlighting that repurchasing its common stock is considered an attractive use of capital at current price levels. This filing details the progress made under the program and the remaining authorization for future repurchases, offering insights into management's confidence in the company's valuation.
Key Highlights
- 1CORPAY, INC. (CPAY) disclosed an update on its stock repurchase program, originally approved on February 4, 2016.
- 2The company has repurchased 1,259,145 shares of its common stock as of December 16, 2016, for a total of $187.7 million.
- 3An aggregate of $500 million was authorized for the stock repurchase program over an 18-month period.
- 4Following the repurchases, $312.3 million remains available under the program for future share buybacks.
- 5The company management views repurchasing its common stock as an attractive use of capital at current market prices.
- 6Future repurchases are discretionary and subject to market conditions, stock price, and legal requirements, with no guarantee on the number of shares to be repurchased.
- 7The company explicitly states that the repurchase program may be extended, suspended, or discontinued at any time without notice.
Frequently Asked Questions
The stock repurchase program, approved on February 4, 2016, has an aggregate authorization of $500 million. As of December 16, 2016, the company had repurchased $187.7 million worth of its common stock.
Following the repurchases made up to December 16, 2016, there is $312.3 million remaining available under the program for future share buybacks.
No, the company explicitly states that the timing, manner, price, and amount of future repurchases are at its discretion and subject to various factors like market conditions and stock price. There is no guarantee as to the number of shares that will be repurchased, and the program can be suspended or discontinued at any time without notice.
CORPAY believes that repurchasing its common stock is an attractive use of capital at recent price levels, indicating management's view that the stock is undervalued or that it's an efficient way to return capital to shareholders.