Babcock & Wilcox Board Authorizes $50M Share Buyback
BW has more than doubled off its 52-week low of $0.873.
Summary
Babcock & Wilcox's board authorized a $50 million share repurchase program, signaling confidence after a strong Q1 and a $230 million equity raise in May. The buyback represents about 2.9% of the current market cap and could support the stock following recent dilution and a securities class action lawsuit. With shares at $11.69, the repurchase may offset some overhang from the 11.6 million shares registered for resale by existing holders. Additionally, the company plans to redeem $61.4 million of its 6.50% notes.
At the time of this announcement, BW was trading at $11.69 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $0.87 to $22.03. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.