Summary
Cognizant Technology Solutions Corporation (CTSH) announced via an 8-K filing on December 24, 2015, a significant extension of its stock repurchase program. The Board of Directors has approved to extend the program's term from December 31, 2015, to December 31, 2017. This extension signals the company's continued commitment to returning capital to shareholders and reflects confidence in its financial position and future cash flows. The extended program allows Cognizant to continue repurchasing its Class A Common Stock through various methods, including open market purchases and private transactions, subject to applicable securities laws. Management retains discretion over the timing and volume of repurchases, which will be influenced by market conditions and other strategic considerations. The company intends to fund these repurchases using its existing working capital, indicating a healthy liquidity position.
Key Highlights
- 1Extended stock repurchase program from December 31, 2015, to December 31, 2017.
- 2Demonstrates ongoing commitment to shareholder value return.
- 3Repurchases can be made through open market purchases or private transactions.
- 4Program is conducted in accordance with Rule 10b5-1 and Rule 10b-18 of the Exchange Act.
- 5Management has discretion over timing and number of shares repurchased.
- 6Funding for repurchases will come from the company's working capital.