Patrick Industries board of directors has approved a new stock buyback program that authorizes the repurchase of up to $50 million of the company’s common stock over the next 24 months.
Share repurchases will be made from time to time through open market transactions at prevailing market prices, or in privately negotiated transactions or otherwise, according to a news release Tuesday (Jan. 26).
“This new stock repurchase program is aligned with our capital allocation strategy and reflects the confidence that our board of directors and management team have in Patrick’s outlook and our commitment to driving shareholder value,” CEO Todd Cleveland said.
The timing and amount of purchases under the program are discretionary and will be determined by management and the board of directors based upon market and business conditions, stock price and other factors.
The repurchase of any shares under the new stock repurchase program will be subject to restrictions under insider trading laws and the company’s self-imposed blackout periods, as well as the timing of the release of the company’s financial results for the 2015 year.
All or part of the repurchases may be implemented under a Rule 10b5-1 trading plan, which would allow repurchases under pre-set terms at times when the Company might otherwise be prevented from doing so under insider trading laws or because of self-imposed blackout periods.
The company has fully utilized the authorization under its previous stock repurchase program, which was originally announced in February 2013 and subsequently expanded in February 2014 and February 2015.
The company repurchased in the aggregate 1.8 million shares under the previous stock repurchase program at an average price of $25.04 per share for a total cost of approximately $46 million.