Intuitive Surgical (NSDQ:ISRG) said its board OK’s an additional $779 million worth of share repurchasing, including a planned $500 million buyback from Goldman Sachs.
The Sunnyvale, Calif.-based medical device company said its share repurchasing plan is now worth $1.5 billion, including the $721 million remaining on its prior plan.
Intuitive said it will buy back and retire most of the shares it purchases from Goldman within 2 weeks, with the remainder to be retired by Oct. 29.
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"Our program to repurchase $1.5 billion in Intuitive Surgical stock, including $500 million on an accelerated basis, demonstrates our commitment to our shareholders as well as our confidence in the da Vinci surgical system and the benefits it brings to patients," president & CEO Gary Guthart said in prepared remarks.
The move comes after several weeks of pressure for ISRG shares, which have lost about 23% of their value so far this year. The slide accelerated early this month after Intuitive said it would miss the mark with its 2nd-quarter sales, sending shares down more than 11 % in after-hours action July 8. A week later the FDA issued a Class II recall on Intuitive’s flagship da Vinci surgical robot, days before the company confirmed lower 2nd-quarter sales and lowered its full-year outlook. That triggered another slide on Wall Street, where ISRG shares dropped about 13% July 19.
ISRG shares gained 2.2% today on news of the buyback, rising to $390.39 apiece as of about 11 a.m.