Recently announced, CACI International Inc. (CACI) declared that it has started repurchasing shares of its common stock under its 4 million buy back program. The company has successfully bought back 1.3 million shares at an average price of $50.56 per share till now under this authorization.
The company averred that it intends to complete the share repurchase program currently initiated within the coming two months. This CACI International is implementing the scheme under Rule 10(b) – 18 and also in accordance with Rule 10b (5)-1 of the Securities Exchange Act of 1934 (Exchange Act).
CACI International’s Chairman, Dr. J.P. (Jack) London expressed his alacrity with regard to the venture. He believes that the strong pedestal from which the company now commands displaying its leadership skills, pursuing its long-term goals, strategic intent and flourishing growth prospects has induced the Board to engage in such buy-back activities to escalate the company’s stock value incipiently.
Cash investments made for share repurchase is not a new decision for CACI International. During the first nine months of its fiscal 2012, the company spent nearly $209.7 million for buying back shares of its common stock from the market. Such advances to increase shareholder value in the industry make the company’s stock quite attractive in the market today.
Returning optimum value to shareholders is not a singular trait pertaining to CACI International in the industry. On May 1, 2012, KEYW Corp. (KEYW) reported its first quarter results of 2012, whereby it had spent nearly $2.95 million on share repurchase activities during the quarter. Hence, the company should take note of such similar advances made by peers around.
The company currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. However, we presently maintain our ‘Neutral’ recommendation on the stock.
More From Zacks.com