Herbalife Ltd. (NYSE:HLF) stock is trading higher Tuesday after the health and wellness company announced a new $250 million share repurchase program.
The company’s board authorized Herbalife to buy back up to $250 million of its outstanding common stock over three years.
Herbalife Targets Shareholder Returns
Herbalife said the authorization reflects confidence in its business strategy, financial outlook and ability to generate sustainable free cash flow.
“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,” Chief Financial Officer John DeSimone said.
DeSimone added that the company views its shares as attractively valued at current levels. As a result, the company sees repurchases as a potential way to improve long-term shareholder returns.
The company plans to balance buybacks with investments in organic growth, strategic opportunities and financial flexibility.
The company may repurchase shares through open-market transactions, privately negotiated deals or accelerated share repurchase agreements. However, the authorization does not require Herbalife to buy any shares. The company can also suspend, modify or end the program at any time.
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Management Heads To Barclays Conference
Herbalife is also participating in the Barclays Global Consumer Conference on Sept. 8 and Sept. 9.
DeSimone, who is set to become interim CEO, will join incoming CFO Scott Schaefer and investor relations head Samantha Holway for a fireside chat on Sept. 9 at 7:30 a.m. ET.
Price Action
HLF Price Action: Herbalife shares were up 2.67% at $12.71 at the time of publication on Tuesday, according to Benzinga Pro data.
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