boosted its share buyback plan by $500 million Tuesday, a day after the stock hit a 52-week high.
The Nashville, Tenn., pharmacy-benefit manager said it was coming to the end of a previous repurchase plan. Last July, the company's board cleared the repurchase of $750 million worth of stock, and as of Monday, Caremark had bought back $691 million worth of stock under that plan.
"Due to the company's performance and its significant cash flow generation, the board has determined that an increase in the share repurchase program is an appropriate use of excess cash," said CEO Mac Crawford. "The board regularly assesses the repurchase program along with other strategies for deployment of capital to support Caremark's growth and to generate shareholder value."
Caremark closed Monday at $44.19.