ReachLocal to buy back more shares
WOODLAND HILLS, Calif. (AP) — Online marketing company ReachLocal Inc. on Monday said its board had increased the amount the company can spend on stock buybacks by $21 million to $30 million.
Companies buy back shares to reward shareholders. The buyback creates demand for shares and leaves fewer shares available to investors.
ReachLocal's shares rose 40 cents, or 3.2 percent, to $12.91 in midday trading. The shares are nearing their 52-week high of $14.29 but are well below 2011's levels, which topped $26. The Woodland Hills, Calif., company went public in May 2010 at $13 per share.