On February 13, CenturyLink (CTL) shocked the markets when it announced a revised "capital allocation strategy" which included a $2B share repurchase program and a reduction of its dividend by 25%. Also mentioned in the announcement, was a plan to utilize free cash flow to repay debt and to maintain leverage at less than 3.0 times EBITDA. The market has reacted quite negatively to this announcement, sending shares lower by over 13% in the after-hours trading.
Sorry all, reacting to the CTL message, didn't mean to confuse - no WIN did not announce a buy back. CTL announced a 1.8B dividend cut and a $2B share buyback at the same time. Seems they feel the stock is cheap and SH are better served if company buys back 10% of the outstanding shares than gives the cash to them. Interesting strategy because to reinstate the dividend would only cost 1.6B with 10% of the shares retired. FYI that stock is down 20%, very interesting but CEO indicated they would be downgraded to junk as well, but also doesn't plan to do any more investing for a while. Again that stock is down 20%, nice time to start implementing that buy back, very interesting for a quick trade maybe