Shares of F5 Networks (FFIV) - Get Report traded higher on Monday after announcing plans to buy back as much as $1 billion worth of stock - less than a day after activist Elliott Management reportedly took a stake in the company.
Seattle-based F5 said on Monday that its buyback plan includes the accelerated repurchase of $500 million worth of stock in fiscal 2021 and an additional $500 million through fiscal 2022. F5 has a market value of approximately $8.8 billion.
The announcement follows on the heels of reports that Elliott Management has taken an undisclosed stake in the company. According to the Wall Street Journal, F5 and Elliott has been in discussions in recent weeks about ways to boost F5's lagging stock.
The exact size of Elliott’s stake was not immediately known, though it falls below the 5% threshold that would require regulatory disclosure, the Journal said.
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