FirstCash Holdings raises stock buyback authorization by $200 million to $350 million
The company has bought back 644,000 shares so far at an average of $199.46 a share, leaving $222 million under the program.
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FirstCash Holdings has raised its stock repurchase authorization by $200 million, to $350 million. Chief executive Rick Wessel said the increase reflects "a growing disconnect between our current valuation and FirstCash's progress toward our long-term growth objectives."
As of market open on October 28, the company had repurchased 644,000 shares at an average price of $199.46, for a total of $128 million. That leaves $222 million of authorization remaining under the program.
On October 22, the prior authorization was nearly used up, with $50 million left after $250 million of buybacks through the third quarter. Management chose to expand the program rather than let it lapse. That choice treats the share price after the company's earnings report as a buying opportunity, while the pending Ramsdens deal has yet to close. The pace of buying so far suggests the company intends to keep buying actively rather than hold the authorization for later use.
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