Given the title, this is obviously a hypothetical; but with $1.2 billion in cash going into Q3( and they were certainly cash flow positive in Q3 regardless of earnings after charges); they should spend some of that cash on a buy back. It doesn't need to be a significant % of the cash on the balance sheet; but to spend $250m would send a much needed display of confidence to the market.
Smart and mgt don't go in the same sentence unless one says "management wasn't so smart with that decisision". A stock doesn't go from 58 to 47's in 3 weeks unless something leaked or bad news is coming. Maybe they were offered $75 for the company and mgt said that was too much and would take $35 instead. News at 4pm tomorrow on that deal. NLOL