Industrial goods manufacturer IDEX Corporation (IEX) recently approved an additional share repurchase authorization of up to $300 million of IDEX's shares. The company will buy back stocks at regular intervals in the open market or in privately negotiated transactions. This is a strategic move by the company to deploy over $1 billion for acquisitions while maintaining its capital position.
IDEX Corporation continues to fund organic growth while pursuing strategic acquisitions, increasing dividends and remaining active with share repurchases. This additional authorization allows the company to take advantage of periodic dislocations in the stock price and help the company to boost its earnings per share while maintaining its capital deployment strategy. The capital activities are part of company’s strategy to maximize shareholders value.
IDEX Corporation’s solid financials assist the company to fund its buyback program. The company plans to fund the new repurchase with its available cash balance. It exited the last quarter of 2013 with cash and cash equivalents of $399.8 million. In the last reported quarter, IDEX Corporation repurchased 881,000 shares for $53 million in the reported quarter, bringing its year-to-date tally to 2.5 million shares for $138 million.
IDEX Corporation is a provider of applied solutions that sell a broad range of pumps, flow meters and other fluidics systems and components and engineered products to customers in different markets around the world. The company, along with its subsidiaries, manufactures and markets its products both in the United States and internationally.
IDEX Corporation currently has a Zacks Rank #2 (Buy). Stocks such as Xylem Inc. (XYL), DXP Enterprises, Inc (DXPE) and Graham Corp (GHM) from the same industry are also worth considering as they also carry Zacks Rank #2.