Aruba Networks Inc. shares jumped Thursday after it said that it plans to buy back up to $100 million additional shares of its stock.
THE SPARK: The wireless communications company said late on Wednesday that it decided to set aside more money for buying back its stock after nearly spending almost all of its $100 million buyback program, which was approved in July.
THE BIG PICTURE: Aruba, based in Sunnyvale, Calif., provides network access services and software for the wireless industry.
Companies typically buy back shares to help boost the value of its existing shares for investors. That can increase earnings per share and help offset the effect of paying employees in stock and options.
SHARE ACTION: Aruba's shares rose 89 cents, or 4.9 percent, to $19.10 in midday trading. Over the past 52 weeks, the stock has traded from $12.38 to $26.78.