Share Repurchases Hiked by TeleTech
TeleTech Holdings, Inc. (TTEC) recently announced that its Board of Directors has approved an authorization to purchase additional shares worth $25 million under the share repurchase program. Earlier in Dec 2012, TeleTech had also extended its share repurchase program by a similar amount to bring its tally to $537.3 million till Mar 31, 2013.
Out of this, the company has already purchased 37.7 million shares for $521.7 million, at an average price of $13.84 a share. During the first quarter of 2013, TeleTech had repurchased 487,000 shares for $9.8 million.
Including the current hike, TeleTech has approximately $40.6 million remaining under the share repurchase program with no specific deadline. The company plans to use its cash flow from operations for the stock repurchase.
During the first quarter of 2013, the company generated $6.5 million from its operating activities. Also, during its first quarter results, the company reported cash and cash equivalents of $170.5 million with total debt of $128.9 million.
TeleTech presently pays no quarterly dividends and uses only share repurchase program to return cash to its shareholders. Consequently, by augmenting its share repurchase tally, it plans to return additional cash to provide attractive risk-adjusted returns to its stockholders.
TeleTech provides technology-enabled solution to its customers, which helps its client companies to maximize their revenue, transform customer experience and build an optimum business model.
TeleTech currently carries a Zacks Rank #1 (Strong Buy). Some other stocks within the industry are Convergys Corporation (CVG), Portfolio Recovery Associates Inc. (PRAA) and Sykes Enterprises, Incorporated (SYKE), each carrying a Zacks Rank #2 (Buy).
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