ResMed’s (NYSE:RMD) board of directors authorized a new share buyback program granting the company approval to reclaim up to 20 million shares of its common stock on the open market.
As of February 21, 20 million shares represents bout 14% of the company’s outstanding stock.
The new buyback replaces the previous program, under which the company had approval to repurchase another 1.9 million shares. The new repurchasing initiative has no expiration date, ResMed said.
New of the buyback garnered the company little Wall Street favor when it was announced earlier this month, but ResMed has recovered from a temporary slump in shares following the release of its Q2 financial report.
RMD shares dropped 6% on January 24 after ResMed reported an 11% boost in profits on a 2% increase in sales for its quarter ended December 31.
RMD shares were down 0.4% today, trading at $44.03 as of about 4 p.m.
