Summary
Quest Diagnostics Incorporated (DGX) announced on April 28, 2021, that it entered into accelerated share repurchase (ASR) agreements totaling $1.5 billion. This significant capital return initiative is part of the company's ongoing common stock repurchase program. The company paid $1.5 billion on April 27, 2021, and initially received approximately 9.07 million shares. The final number of shares repurchased will be determined by the average daily volume-weighted average price over a specified period, subject to customary adjustments and terms within the agreements.
Key Highlights
- 1Quest Diagnostics has initiated a substantial $1.5 billion accelerated share repurchase program.
- 2The ASR program is part of the company's existing common stock repurchase authorization.
- 3An initial payment of $1.5 billion was made on April 27, 2021.
- 4The company received an initial 9,072,352 shares of common stock on April 27, 2021.
- 5The final number of shares repurchased will be based on the average volume-weighted average price during the repurchase period, less a discount and subject to adjustments.
- 6The repurchase program is expected to conclude in the fourth quarter of 2021.
- 7The agreements include customary provisions for adjustments, acceleration, and termination.
Frequently Asked Questions
An accelerated share repurchase agreement is a transaction where a company buys back its own stock from a financial institution. The company makes an upfront payment, receives an initial number of shares, and the final number of shares repurchased is determined later based on the stock's market price over a defined period.
The ASR program is part of Quest Diagnostics' broader common stock repurchase program, indicating the company's commitment to returning capital to shareholders and potentially signaling confidence in its stock valuation.
The final number of shares will be based on the average daily volume-weighted average price of Quest Diagnostics' common stock during the repurchase period, less a discount, and subject to adjustments outlined in the ASR agreements. There are also provisions for potential additional share deliveries or cash payments at settlement.
The transaction is expected to be completed during the fourth quarter of 2021.