Summary
Honeywell International Inc. (HON) announced on April 29, 2019, a significant new share repurchase program authorized by its Board of Directors. This program allows for the repurchase of up to $10 billion of the company's common stock. This includes the remaining availability from a prior $8 billion authorization, approximately $2.3 billion of which was unused. The repurchase plan is flexible, allowing for various methods including open market purchases and accelerated share repurchases, and has no set expiration date. Investors should note that the primary stated purposes for these repurchases are to offset the dilutive effects of employee stock compensation plans and to opportunistically reduce the overall share count. The company indicated that the timing and amount of repurchases will be influenced by market conditions and other business activities. This authorization does not alter existing forward-looking share count disclosures.
Key Highlights
- 1Honeywell authorized a new share repurchase program valued at up to $10 billion.
- 2This new authorization includes approximately $2.3 billion in remaining availability from a prior $8 billion repurchase program.
- 3The repurchase program has no expiration date and can be modified or terminated by the Board at any time.
- 4Repurchases can be executed through various methods including open market purchases, accelerated share repurchases, and private negotiations.
- 5The primary goals of the repurchase program are to offset dilution from employee stock compensation and to opportunistically reduce the outstanding share count.
- 6The timing and amount of repurchases will depend on market conditions and business needs.
- 7As of March 31, 2019, Honeywell had approximately 727.7 million shares of common stock outstanding.