Herbalife Ltd. (NYSE: HLF) shares were in positive country Tuesday. The company, a premier health and wellness concern, community and platform, today announced its Board of Directors has authorized the repurchase of up to $250 million of the Company’s outstanding common stock over three years.
“The new authorization,” to quote this morning’s news release, “reflects the Company’s confidence in its business strategy, financial outlook and ability to generate sustainable free cash flow, while providing an additional avenue to create long-term value for shareholders.”
“We believe our strong financial profile and free cash flow generation provide us with significant flexibility to invest in the business, maintain a strong balance sheet and return capital to shareholders,” said Chief Financial Officer John DeSimone.
“Given our confidence in the long-term outlook for the Company and our view of the value represented by our shares at current levels, we believe repurchasing our stock represents a compelling use of capital and an attractive opportunity to enhance long-term shareholder returns.”
The Company intends to continue executing a disciplined and balanced capital allocation strategy focused on investing in organic growth initiatives, pursuing strategic opportunities, maintaining appropriate financial flexibility and returning excess capital to shareholders. The share repurchase program provides the Company with additional flexibility to opportunistically repurchase shares when management and the Board believe doing so represents an attractive use of capital.
HLF shares gained 17 cents, or 1.4%, to $12.55.
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