Market Commentary and Intraday News
O'Reilly ups potential buybacks by another $500M
283 days ago
(AP:SPRINGFIELD, Mo.) Car products retailer O'Reilly Automotive Inc. on Friday again boosted the amount of shares it may buy back by $500 million, bringing its total potential buybacks to $2.5 billion.
The authorization for the additional share amount is effective for a three-year period starting Friday.
The Springfield, Mo.-based company made a similar announcement in June, when it increased the number of shares it could buy back by $500 million to $2 billion.
O'Reilly isn't obligated to buy back the shares and could change its mind if it decides that buying the shares wouldn't be a good deal.
It said last month it has repurchased $861 million of its stock so far this year and more than $1.8 billion in stock since the program began last year.
The company didn't give a reason for the boost. But companies usually portray buybacks as a favor to shareholders, since a reduced number of shares in circulation boosts earnings per share.
Critics say that shareholders would be better off if companies spent the money reinvesting in the business, or returned it to shareholders in dividends. They also argue that companies don't often reduce their total number of shares for long, since they tend to issues shares to pay employees.
O'Reilly Automotive sells car parts and accessories. Its shares were up 94 cents at $85.56 in after-hours trading, after closing down 38 cents at $84.62.
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