HP shares rose 99 cents, or 2.61%, to $38.99 before market open as shareholders responded positively to the news. The buyback is equal to 11% of HP's market cap and follows a $2.6 billion share repurchase during the company's recent fiscal third quarter.
The tech giant, which exited the third quarter with gross cash of $14.8 billion, said that the move will support its ongoing share-buyback efforts.
HP has been rarely out of the headlines in recent weeks, but is clearly keen to keep shareholders on its side. The tech bellwether, which has been locked in a bidding war with Dell (DELL) for 3Par (PAR), is also hunting for a new CEO after the recent expenses scandal that led to the departure of Mark Hurd.The company's latest share repurchase follows an $8 billion buyback that was authorized in November last year. HP said that, as of July 31, the firm had approximately $4.9 billion of repurchase authorization remaining from the $8 billion. "HP has a strong balance sheet -- we expect to repurchase at least $3 billion worth of our shares in our fiscal fourth quarter at current price levels," said Cathie Lesjak, HP's CFO and interim CEO, in a statement. "This increased authorization will ensure that we have sufficient capacity to continue to be active in repurchasing our shares prior to our fiscal fourth quarter earnings announcement in November." --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: email@example.com
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV