The Waterloo, Ontario-based smartphone maker said its board of directors authorized a buyback plan to purchase for cancellation up to 12 million BlackBerry common shares, or about 2.6% of all outstanding common shares.
The company also said it will propose a new employee share purchase plan and an increase to the number of shares available under its equity incentive plan at its annual shareholders meeting on June 23, 2015.
"The purpose of this repurchase program will be to offset dilution that may result from our proposed employee share purchase plan and from proposed amendments to our equity incentive plan," Executive Chairman and CEO John Chen said in a statement.
Chen continued, "We intend to take advantage of our strong cash position to purchase our shares when the market price does not reflect what we view to be the underlying value and future prospects of our business, without adversely affecting our strategic initiatives."
TheStreet Ratings team rates BLACKBERRY LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLACKBERRY LTD (BBRY) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its declining revenues."