SPRINGFIELD, Mass. (AP) -- Smith & Wesson Holding Corp. said Tuesday that it plans to buy back up to $15 million of its stock and has eliminated its "poison pill" provision.
The gun maker just completed the repurchase of $100 million of its common stock under a previous program that was approved in June. Under that, the company purchased 9 million shares of its common stock at an average price of $11.09. That has left the company with 55.8 million shares outstanding.
Smith & Wesson said Tuesday that the company's board has authorized the repurchase of an additional $15 million of the company's common stock based on the strength of its balance sheet and expected cash flow.
CEO and President James Debney said in a statement that the company believes that investing in itself is presently one of its greatest opportunities.
The company's board also has decided to eliminate the company's shareholder rights agreement, often known as a "poison pill" provision, which was scheduled to expire in August of 2015. The plan was put in place in 2005. Such plans typically allow existing shareholders to acquire more stock at a discounted rate to discourage a takeover by an outside entity.
Smith & Wesson's board said in a statement that it made the move as part of its "ongoing commitment to good corporate governance practices." A representative for the company did not immediately respond to a request for more detail.
Shares of the Springfield, Mass.-based company increased 19 cents to $11.18 amid a broader market uptick.