Summary
Marriott International, Inc. (MAR) announced a significant increase in its share repurchase program, authorized by its Board of Directors on August 3, 2006. The company has added 40 million shares to its existing authorization, bringing the total available for repurchase to approximately 51 million shares. This move signals management's confidence in the company's financial health and its belief that its stock is undervalued, aiming to enhance shareholder value.
Key Highlights
- 1Marriott's Board of Directors authorized an increase of 40 million shares for its common stock repurchase program.
- 2This expansion brings the total authorized shares available for repurchase to approximately 51 million.
- 3The company can execute these repurchases through open market transactions or privately negotiated deals.
- 4The repurchase authorization indicates management's commitment to returning capital to shareholders.
- 5This action suggests management believes the company's stock is currently trading below its intrinsic value.